PRC-1 · Chapter 2 · Question 93 of 100
What happens to the total of the 'Purchases Returns Day Book' at the end of the accounting period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is credited to the Purchases Returns account and debited to the Payables Control account.
Explanation
Returning goods reduces the supplier liability (Debit Payables Control) and reverses an expense, creating a credit balance (Credit Purchases Returns/Returns Outwards).
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