Recording purchase returns in the buyer's double-entry books

Steps:

• Confirm Tebogo as buyer of goods on credit from Tembo, now returning them unpaid.
• Debit supplier Tembo's account in purchases ledger to reduce creditor balance.
• Credit purchase returns account in general ledger to offset original purchase.
• Ensure double-entry balance: total debits equal credits, no cash impact.

Why C is correct:

• Purchase returns require entries in both general ledger (purchase returns account, nominal) and purchases ledger (supplier's personal account, reducing liability) per double-entry principles.

Why the others are wrong:

• A: Cash book irrelevant; no cash changes hands in a credit return.
• B: General ledger alone misses personal ledger update for the creditor.
• D: Purchases ledger alone ignores nominal account in general ledger.

Final answer: C