Commerce Exam > Commerce Questions > What will be the Journal Entry when goods pur...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
What will be the Journal Entry when goods purchased are returned?a)Cre...
Journal Entry for Goods Purchased Returned
When goods purchased are returned, the appropriate journal entry would be:
Creditors A/c Dr. To Purchase Returns A/c
Explanation:
The above journal entry records the return of goods to the supplier or creditor. The account that is credited is Purchase Returns A/c, which is a contra account of Purchase A/c and reduces the value of purchases. The account that is debited is Creditors A/c, which is a personal account and represents the amount owed to the supplier for purchases made on credit.
Below are the details of the accounts involved in the journal entry:
Creditors A/c:
- It is a personal account
- Represents the amount owed to the supplier
- Debited when purchases are made on credit
Purchase Returns A/c:
- It is a nominal account
- Represents the returns of goods purchased
- Contra account of Purchase A/c
- Credited when goods are returned
In conclusion, when goods purchased are returned, the above journal entry should be recorded to accurately reflect the transaction in the accounting records.
When goods purchased are returned, the appropriate journal entry would be:
Creditors A/c Dr. To Purchase Returns A/c
Explanation:
The above journal entry records the return of goods to the supplier or creditor. The account that is credited is Purchase Returns A/c, which is a contra account of Purchase A/c and reduces the value of purchases. The account that is debited is Creditors A/c, which is a personal account and represents the amount owed to the supplier for purchases made on credit.
Below are the details of the accounts involved in the journal entry:
Creditors A/c:
- It is a personal account
- Represents the amount owed to the supplier
- Debited when purchases are made on credit
Purchase Returns A/c:
- It is a nominal account
- Represents the returns of goods purchased
- Contra account of Purchase A/c
- Credited when goods are returned
In conclusion, when goods purchased are returned, the above journal entry should be recorded to accurately reflect the transaction in the accounting records.
Free Test
FREE
| Start Free Test |
Community Answer
What will be the Journal Entry when goods purchased are returned?a)Cre...
Creditor as a liability decrease so debited, purchase means goods are return back so it is credited.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer?
Question Description
What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer?.
What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer?.
Solutions for What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What will be the Journal Entry when goods purchased are returned?a)Creditors A/c Dr. To Purchase Returns A/cb)Purchase Return A/c Dr. To Creditors A/cc)Creditors A/c Dr. To Sales A/cd)None of these.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup