What will be the Journal Entry when goods purchased are returned? 
  • a)
    Creditors A/c Dr.  To Purchase Returns A/c 
  • b)
    Purchase Return A/c Dr.  To Creditors A/c 
  • c)
    Creditors A/c Dr.  To Sales A/c 
  • d)
    None of these. 
Correct answer is option 'A'. Can you explain this answer?

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Answers

Huzaifa Arthuna
Jul 29, 2020
Purchase return is the income of the firm & creditors will decreases

Kirandeep Kaur
Jul 28, 2020
Creditor as a liability decrease so debited, purchase means goods are return back so it is credited.

Indu Nair
Jul 28, 2020
Option a is the answer,
creditors a/c dr.
To purchase return a/c

Donald Teron
Feb 26, 2020
Because the goods is return from the creditors....

Purchase return is the income of the firm & creditors will decreases
Purchase return is the income of the firm & creditors will decreases