Purchase Returns

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
im doing the exam from june 04 and im really confused. When we bring all of last years figures forward to the current year why do the purchase RETURNS figure go on the credit side. Is it because purchases would normally go on the debit side so therefore a return would go on the opposite side?<BR><BR>Chris.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Purchase Returns

    Hi Chris.<BR><BR>Yes, purchase returns are a credit.<BR><BR>Remember 'PEARLS', where Purchases, Expenses & Assets are debits, and Revenue, Liabilities and Sales are a credit, and returns therefore are the opposite.<BR><BR>Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Purchase Returns

    Thats exactly what i was trying to get my head round, cheers Scott.<BR><BR>Chris.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Purchase Returns

    i use deadclic <BR><BR>debit<BR>expenses<BR>asset<BR>drawings<BR><BR>credit<BR>liabilties<BR>income<BR>creditors

Categories

Privacy Policy