Question

goods return to Ram what is the journal entry

Answer 1

ram a/c Dr.
to purchase returns

Answer 2

Ram a/c Dr

To purchase return a/c. Cr

(Being purchased goods being returned to Ram)

• Since goods are being sent back to Ram, he is being debited.
• The goods are being reduced in the books, hence the reason why it is getting credited.
• Since Ram is getting back the goods it is being credited to his name.
• This journal entry is a double-entry which shows how and why something is reduced or gained.