Sales Returns Book
Sales Returns Book:
Learning Objectives:
-
Define and explain sales return book.
-
What is a credit note?
-
Prepare a sales returns book and post into ledger.
Definition and Explanation:
Sales returns book is also called returns inwards book. It is used for recording goods returned to us by our customers. The ruling of this books is exactly as for sales day book.
Posting:
The of the returns inwards book or sales returns book is debited to returns inwards account or sales returns account. The customers who have returned the goods are credited with the amount shown against their names.
Credit Note:
Customers who return goods should be sent a credit note. It is a statement sent by a business to another person showing the amount credited to the account of the later. Credit notes are serially numbered and are similar in form to the invoices. These are usually printed in red ink. Credit notes issued to customers are vouchers for the entries appearing in the sales returns book.
Form of Credit Note:
Messrs Ideal Traders, Peshawar Cr. in account with Messrs Good luck & Co.. Lahore |
Lahore, March 19, 1991 |
By 100 shirt at $2 Goods returned as per I/No………Dated……. Dollars two hundred only |
200 |
E. & O. E. | For Good luck & Co. Partner |
Format of Sales Returns Book:
The following is the format of sales returns book:
Date | Particulars | C/N | L.F. | Amount |
Example:
From the following transactions of a trader prepare the sales returns book and post it into ledger:-
1991 | $ | |
January 8 | Goods returned by Parker & Co. | 40 |
” 20 | Goods returned by Ideal Traders $52 | 52 |
” 31 | Allowance granted to Riaz & Co.., for short delivery | 100 |
Solution:
Sales Returns Book
Date | Particulars | D/N | L.F. | Amount |
1991 |
Parker & Co. Ideal Traders Riaz & Co. |
$ 40 52 100 |
||
192 |
Sales returns Account
1991 |
By Sundries as per S.R.B |
$ |
|
|
Parker & Co.
|
|
1991
|
By Sales returns |
$ |
Ideal Traders
|
|
1991
|
By Sales returns |
$ |
Riaz & Co.
|
|
1991
|
By Sales returns |
$ |
You may also be interested in other articles from “subdivision of journal” chapter:
- Definition and Explanation of Cash Book
- Single Column Cash Book
- Two Column Cash Book/Double Column Cash Book
- Three Column Cash Book
- Bank Reconciliation Statement
- Petty Cash Book
- Purchases Day Book
- Purchases Returns Book
- Sales Day Book
- Sales Returns Book
- Bills Receivable Book
- Bills Payable Book
- Journal Proper