Purchase returns - in or out???

MuppetchopsMuppetchops Just JoinedPosts: 4Registered
Hello

I'm doing AAT intermediate having come straight in to it following a very basic 10 week book-keeping course. I'm afraid it's muppet by name, muppet by nature and I'm struggling like mad :blushing:. Can somebody PLEASE put me right - are purchase returns the returns in or the returns out? :(

Sorry everyone.

Muppetchops

Comments

  • lauradwknslauradwkns Settling In Nicely Posts: 23Registered
    returns out. Think of it as stock you bought, being returned, therefore going out.
  • MuppetchopsMuppetchops Just Joined Posts: 4Registered
    Many thanks Laura - that makes sense!

    MChops
  • phunkyphantom22phunkyphantom22 Well-Known Posts: 166Registered
    Purchase returns - returns the business makes i.e returns out

    Sales returns - returns the customer makes i.e. returns in

    Remember these may be recorded in the sales/purchases day books as a return or the business may keep seperate sales/purchases returns day books. It will depend on the volume of transactions which go through the business i.e. if there are not millions of sales and therefore not many returns, it makes sense just to include them in the sales day book as returns.
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