Purchase returns - in or out???

Muppetchops
Muppetchops Registered Posts: 4 New contributor 🐸
in General discussion
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

  • lauradwkns
    lauradwkns Registered Posts: 23 New contributor 🐸
    returns out. Think of it as stock you bought, being returned, therefore going out.
  • Muppetchops
    Muppetchops Registered Posts: 4 New contributor 🐸
    Many thanks Laura - that makes sense!

    MChops
  • phunkyphantom22
    phunkyphantom22 Registered Posts: 166 Dedicated contributor 🦉
    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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