ACCA Applied Knowledge · Financial Accounting · Sales and purchases
Which book of prime entry would normally be used to record goods returned to a supplier, before posting to the ledger accounts?
The purchases returns day book is used. It records goods sent back to suppliers, based on the debit note or credit note, before totals are posted to the payables control and purchases returns accounts. The sales returns book covers customers' returns.
- APurchases returns day bookCorrect
- BSales returns day book
- CCash book
- DPetty cash book
Explanation
Goods returned to suppliers are recorded from debit notes or supplier credit notes in the purchases returns day book. The sales returns day book records returns from customers. Cash and petty cash books record money movements, not credit returns.
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