Multiple choice

Goods previously purchased from Ram are returned to him because of some defect in them. Now this will be recorded in

  1. purchase journal

  2. purchase return journal

  3. None of these

  4. journal proper

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When goods bought on credit are returned to the supplier, the transaction is recorded in the purchase return journal, also known as the returns outward book. This book tracks all such returns to ensure the accounts payable to suppliers are correctly adjusted. It is a specialized subsidiary book for this specific purpose.