Question

When goods purchased are returned to the supplier, it is referred to as:

• A. Sales Return
• B. Purchase Return
• C. Purchase Discount
• D. Purchase Allowance

Answer 1

Answer:

B. Purchase Return

PURCHASE RETURN:

• When purchased goods are returned to the suppliers, it is known as purchase return or return outwards.

• It should be deducted from purchase to calculate Net Purchase.

• Example: Returned goods to Anju Traders Rs.500