In recording a purchase return, which account is debited?

• A. Debiting Purchases
• B. Debiting Trade Creditors
• C. Debiting Purchase Returns
• D. Debiting Bank

Answer: (B)

The main idea is that a purchase return lowers what you owe to the supplier. When a return occurs, you reduce the liability by debiting the Trade Creditors account. The offsetting entry records the reduction in purchases by crediting Purchase Returns, which acts as a contra-expense to show the overall decrease in purchases.

So debiting Trade Creditors is the correct move because you are decreasing the amount owed to suppliers. Debiting Purchases would wrongly increase expenses. Debiting Purchase Returns would inflate the returns account rather than reflect the reduction in liability. Debiting Bank would only apply if you were handling a cash refund, not the recording of the return itself.