What purpose do the purchase return and sales books serve?
Answers
Due to the defects in goods or may be the quality not qualifying the specified criteria, purchased goods are returned to the vendors.
The entry to showcase this effect in the books of account is caleed Purchase Return. Sales Boook is used to record all the transactions pertaining to the sales of any organisation.
Purpose of purchase return and sales books:
The purchase return is an account created when a situation in which the goods that are purchased on credit are given back returned to the seller i.e. when the product sold is defective or of low quality, etc.
These are type transactions that are recorded in a Purchase return account. This book is created to basically record all the return transactions. The sales book is one of the most important books in accounting, and also one of the most fundamental accounts to be created.
A sales book is an account that records transactions of all the credit sales made by the company in the accounting year, unlike cash book the sales book is only records credit sales.