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Purchases journal - Purchases journal (also known as purchases book and purchases day book) is a
special journal used by businesses to record all credit purchases. (htt19)
Example
The following example summarizes the procedure of entering transactions in the purchases journal
and then posting the entries to accounts payable subsidiary ledger and general ledger accounts.
Returns inwards - Return inwards are goods returned to a business by its customer(s). They are
goods which were once sold to external third parties, however, because of being unsatisfactory,
they were returned by the customer. They are also called “Sales Returns”.
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