1. 2. Purchases book are included in original books of entries whereas purchases account is an account opened in ledger. Only credit purchases are entered in purchases book whereas in purchases account both cash and credit purchases are recorded. Purchases book does not have Dr. or Cr. Side whereas Purchases account has Dr.and Cr. Side. Purchases book is only totalled and is not balanced whereas balance of purchases account is calculated. 3. 4. Purchases Return Book A book in which a return of purchased goods is recorded is known as purchases return book.Any allowance because of any other reason except return of goods is received from seller is also recorded in this book. The following may be the reasons for returning of goods: 1.Goods are defective or of inferior quality. 2.Goods are not according to the sample. 3. Goods have not been sent in a certain period or sent late. 4.Goods have not been sent as per the specifications. 5. Goods have been damaged in transit Sometimes the situation is that it is not possible to return goods, invoice is overcasted, goods are entered in invoice but have not been sent,rate of goods has been charged higher then discount is given to purchaser from the amount of invoice by the seller.Purchaser sends the Debit Note to the seller in the above situation in which Name of the seller, particulars of goods and reason of returning goods are mentioned. Debit Note represents that purchaser has debited the account of seller with the required amount of discount. In this relation a Credit Note is sent by the seller to the purchaser. Credit Note represents that the seller has credited b11 the account of purchaser with the amount of discount.In case of purchases return a debit note is prepared in two copies by the purchaser in which original copy is sent to the seller and duplicate copy works as an original document. On its basis transaction is recorded in purchases return book. Here it is to be noted that purchaser inspite of recording transactions on the basis of Debit note should record after receiving Credit note from the seller. Format of Purchases Return Book The format of purchases return book is same as purchases book; the only difference is of the column of invoice number. In purchase return book Debit note or Credit note number is written in this column. At the time of closing purchases return book Purchase Return a/c Cr.is written. Illustration 19: Prepare Purchases Returns Book of Garg Pustak Mandir from the following transactions: 2016 June 6 5 Books of Physics by Paranjape @ +200 each 10 Books of Chemistry by Goyal @250 each Trade Discount 10%, Credit Note No. 35. June 20 Allowance received from Agarwal Book Depot on account of mistake in invoice