What is Return Outwards?

Return Outwards

Return outwards refer to the goods returned by an organization to its suppliers. They are goods which were purchased from suppliers, however, because of being unsatisfactory or a different reason were returned back to the suppliers, they are also called Purchase returns.

Returns in accounting refer to the goods returned by a business to its suppliers or by a customer to a business. In one case, it is a sales return and in the other, it is a purchase return. The transaction in both cases is reversed and the concerned sale or purchase does not happen.

Purchase returns reduce total purchases of a company and the deduction is shown in the trading account. A subsidiary book, namely Purchase returns book is prepared to record all such entries.

Journal Entry for Return Outwards

Supplier’s A/C Debit
To Return Outwards A/C Credit


Return Outwards or Purchase Returns

Related Topic – What is Sales Return Book?

Example – Return Outwards

Let us suppose that a company named Unreal Pvt Ltd returned goods worth 10,000 to its supplier Star Pvt Ltd. The journal entry to record these returns in the books of Unreal Pvt Ltd will be;

Star Pvt Ltd. A/C 10,000
To Return Outwards A/C 10,000


>Read Return Inwards