* not completed

. Purchase returns reduce trade payable liabilities.

True correct incorrect

False correct incorrect

* not completed

. The purchase returns day book is not part of the double entry system.

True correct incorrect

False correct incorrect

* not completed

. The purchase returns day book for May shows the total value of purchase returns as £22,800 including VAT of £3,800. The correct double entry to record these purchase returns is Debit Trade payables control account £22,800, Credit VAT £3,800, Credit Expenses £19,000.

True correct incorrect

False correct incorrect

* not completed

. Purchase returns reduce both expenses and the VAT liability.

True correct incorrect

False correct incorrect