Explain the return inward book and give its format

Goods returned from customers are recorded in return inwards book.

Return inwards reduces the business total accounts receivables. For business, return inwards decrease the revenue and for the customer, it decreases the receivables for business.

Journal entry

The journal entry for a return inward book is as follows −

Return inwards A/c
     To customers Ac

The reasons for inward returns are as follows −

  • Incorrect goods.
  • Not the required quantity.
  • Defective goods.
  • Defects arose in the warranty period.
  • Expired goods.


The advantages for the return inward book are as follows −

  • Reason for return is known (like quantity, quality, value etc.)
  • Obtain total amount of sale return.
  • Reduces clerical work.
  • Detects errors in writing sales books.
  • Sale return particulars are known.

The return inward process is explained below with the help of a diagram −


The format for the return inward book is as follows −

DateName of customerCredit notefolioAmount