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Respected Nikhil sir
Please explain purchases return & sales return books with 1 example respectively.

Thumbs-up to Mukul for correct answer. 
However, when individual creditor's or debtor's account is debited/credited at the time of Sales Return or Purchase Return , then there is no need to debit/credit sundry debtor's/sundry creditor's account. Thus, Purchase Return and Sales Return A/c will be as follows. 
Purchase Return Account
Dr.   Cr.
Date Particulars J.F. Amount
(Rs)		 Date Particulars J.F. Amount
(Rs)
          A   30,000
          B   20,000
               
                   
 
Sales Return Account
Dr.   Cr.
Date Particulars J.F. Amount
(Rs)		 Date Particulars J.F. Amount
(Rs)
  A   30,000        
  B   20,000        
               

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At times it may be necessary to return few goods back to a supplier when an order is received, this may be due to poor quality, inaccurate quantity, untimely delivery or other reasons. It is also called returns outward and an appropriate purchase returns or a returns outward book is maintained. All returns are primarily recorded in the purchase returns book unless the returns are not that frequent, in which case they are recorded in the journal. Sample Format of Purchase Returns Book  Date  Particulars  Debit Note No.  LF.  Details  Amount                                    

 Example: Let’s assume that the total purchase returns made at the end of a month are for 50,000.

  1. Returns made to A are 30,000.
  2. Returns made to B are 20,000.

These 4 different ledger accounts will be updated from the purchase returns book.

 

 Purchase Returns A/C

 Date  Particulars  Amt  Date  Particulars  Amt        mm/dd  By Sundry Creditors A/C  50,000

 

 Sundry Creditors 

 Date  Particulars  Amt  Date  Particulars  Amt  mm/dd  To Purchase Returns  50,000      

 

A’s Account

 Date  Particulars  Amt  Date  Particulars  Amt  mm/dd  To Purchase Returns  30,000      

 

 B’s Account

 Date  Particulars  Amt  Date  Particulars  Amt  mm/dd  To Purchase Returns  20,000      

 

Sales Return or Returns Inward Book

When a business sends the ordered goods back to a vendor it is recorded in sales return book. At times the buyer may return goods due to poor quality, inaccurate quantity, untimely delivery or other reasons. It is also called returns inwards and an appropriate sales return or a returns inward book is maintained. All returns are primarily recorded in the sales return book unless the returns are not that frequent, in which case they are recorded in the journal.

 

Sample Format of Sales Return Book  Date  Particulars  Credit Note No.  LF.  Currency  Amount                        

 Let’s assume that total sales returns made at the end of a month are 50,000.

  1. Returns made by A are 30,000.
  2. Returns made by B are 20,000.

These 4 different ledger accounts will be updated from the sales returns book.

 

Sales Return A/C

 Date  Particulars  Amt  Date  Particulars  Amt  mm/dd  To Sundry Debtors A/C  50,000      

 

 Sundry Debtors A/C

 Date  Particulars  Amt  Date  Particulars  Amt        mm/dd  By Sales Returns A/C   50,000 

 

A’s Account

 Date  Particulars  Amt  Date  Particulars  Amt        mm/dd  By Sales Returns A/C   30,000

 

B’s Account

 Date  Particulars  Amt  Date  Particulars  Amt        mm/dd  By Sales Returns A/C  20,000
 
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