Question 42 of 45intermediate🔧 ApplyNumerical4 marks

Prepare a purchases return (journal) book from the following transactions for April 2017. 2017 April 05 Returned goods to M/s Kartik Traders 1,200 10 Goods returned to Sahil Pvt. Ltd. 2,500 17 Goods returned to M/s Kohinoor Traders for list price ₹2,000 less 10% trade discount. 28 Return outwards to M/s Handa Traders 550

Correct Answer

Purchases Return Book

DateDebit Note No.Name of SupplierL.F.DetailsAmount (₹)
2017
April 05M/s Kartik TradersGoods returned1,200
April 10Sahil Pvt. Ltd.Goods returned2,500
April 17M/s Kohinoor TradersList price ₹2,000 less 10% Trade Discount1,800
April 28M/s Handa TradersReturn outwards550
Total6,150

Calculation for April 17: List Price = ₹2,000 Less: Trade Discount (10% of ₹2,000) = ₹200 Net Amount = ₹1,800

Exercise: Numerical Questions | Q: 15
For More Understanding

Explanation

The Purchases Return Book (also called Returns Outward Book) records all goods returned to suppliers. For the transaction on April 17, trade discount of 10% is deducted from the list price before recording the net amount. The total of the Purchases Return Book is ₹6,150, which will be posted to the Purchases Return Account in the ledger.

Solution Steps

  1. Step 1: Enter the transaction of April 05 - Goods returned to M/s Kartik Traders ₹1,200

  2. Step 2: Enter the transaction of April 10 - Goods returned to Sahil Pvt. Ltd. ₹2,500

  3. Step 3: Calculate net amount for April 17 - List price ₹2,000 - Trade Discount 10% (₹200) = ₹1,800

  4. Step 4: Enter the transaction of April 28 - Return outwards to M/s Handa Traders ₹550

  5. Step 5: Total the Purchases Return Book: ₹1,200 + ₹2,500 + ₹1,800 + ₹550 = ₹6,150

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