Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 30 - No. 44)
How are the entries in the purchases returns journal eventually reflected in the accounting system?
Debited to the purchase account.
Credited to the trade payable account.
Credited to the purchase returns account.
Debited to the trade payable account.
Explanation
The credit entry records the total value of goods returned to a supplier. As such, the account debited is the purchase return account. The debit is to the suppliers. For each individual trade payable account.
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