Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 44)
What is the correct entry in the purchases ledger for a purchase return?
Debit supplier's account, Credit purchase returns
Credit supplier's account, Debit purchase returns
Debit supplier's account, Credit purchases
Credit supplier's account, Debit purchases
Explanation
A purchase return reduces the amount owed to the supplier, therefore, debiting the supplier's account.
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