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What do you mean by Purchase Return? Give an example.
Ans. Sometime the goods an organization orders are not up to the mark and they are not supposed to keep or accept so the same needs to be returned back to its supplier or vendor or seller, it can be whole of the goods or a part of the goods. For example a firm orders for 500 boxes of Pencil, on delivery it is found that the 100 boxes are broken, so all the 100 boxes will be returned back to the company, first the entry of whole 500 boxes will be recorded and then the returned 100 boxes will be recorded in the purchase return book and at the end of the month the total of Purchase Return it will be transferred to the Purchase Return Book.
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