Returns Outwards And Inwards Book

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Returns Outwards and Returns Inwards Book

It is not uncommon to find that the goods are returned by a business enterprise to the suppliers because of more than one reason. The goods which the trader sends back to the supplier(s) are called Returns Outwards (or Purchase Returns). Similarly the goods might be returned to the trader or business enterprise too for the reasons outlined above and these are called the Returns Inwards (or Sales Returns). The information about them is kept respectively in two subsidiary journals, namely, Purchases Returns Book and Sales Returns Book.

Purchases Returns Books

The Purchases Returns Book (also known as Bought Returns Book or Returns Outwards book) records the details of the goods returned by the business enterprise to the supplier(s). The columns of the Purchases Returns Book correspond to the purchases book namely: Date, Particulars Debit Note Number (as against Invoice No. in the purchases book), Ledger Folio and Amount.

Sales Returns Books

The sales Returns book (or Returns Inwards book) is used to record the goods returned to the business enterprise but the customers because the goods might not be in accordance with the order, or because they were unsuitable, damaged or otherwise unacceptable. The columns used in this book are similar to Sales book except that in place of Invoice No., the Credit Note Number is recorded. A Credit Note is prepared but eh trader in duplicate to signify that the customer’s account is credited with the amounts noted therein. The entries in Sales Returns Journal are made on the basis.

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