SALES RETURNS BOOK :
The details of goods returned by the customers to the business organization are recorded in this book. Goods sold for cash and returned are not recorded in sales returns book. When goods are returned by a customer a credit note is sent to him intimating that his account has been credited with the value of goods returned. A specimen of the sales returns book is as follows:
The individual accounts of the customers are credited with of the respective amounts while the periodical total of the sales returns book is posted to the debit of sales returns account.
Illustration 3:
Record the following transactions in the appropriate books of original entry and show how they will be posted. Assume invoice numbers, folio number, etc.
2013 | |
Mar. 6 | Purchased on credit from Kadam |
200 Shirts @ Rs.1,500 each | |
100 Neckties @ ` 500 each. | |
Mar.10 | Sold on Credit to Mehta |
20 Bush Shirts @ 1,750 each | |
40 Hand towels @ Rs. 100 each. | |
” 13 | Goods returned to Kadam |
4 Shirts @ 1,500 each | |
” 17 | Sold to Andley on Credit |
40 Trousers @ Rs. 1,000 each | |
10 Neck-ties @ Rs.600 each | |
” 18 | Goods received back from Manohar, a customer |
8 Neck-ties @ Rs. 550 each | |
4 Shirts @ Rs.2,500 each | |
” 22 | Sold to Apte on credit |
10 Bush Shirts @ Rs.2,500 each | |
200 metres of long cloth @ Rs.150 per metre | |
” 28 | Apte returns 2 Bush Shirts invoiced at ` Rs. 2,500 |
” 30 | Purchased goods on credit from Gyani Cloth Store |
300Bush Shirts @ Rs.2,000 each | |
400 metres of long cloth @ Rs.125 per metre | |
100 metres of shirting @ Rs. 750 per metre | |
Gyani Cloth Store allows Trade Discount @ 5% | |
Andley returns one Neck-tie invoiced at Rs.600 |
Solution:
Purchases Book
Date | Particulars | Inv. No | L.F. | Details | Amount |
2011 Mar. 6 |
Kadam | ||||
200 shirts ` 1,500 each | 62 | 8 | 3,00,000 | ||
100 Neck-ties ` 500 each | 50,000 | 350,000 | |||
Mar. 30 | Gyani Cloth Store | ||||
300 Bush Shirts `2,000 each | 6981 | 17 | 6,00,000 | ||
400 metre long cloth | |||||
125 per metre | 50,000 | ||||
100 metres Shirting | |||||
750 per metre | 75,000 | ||||
7,25,000 | |||||
Less : Trade Discount 5% | 36,250 | 6,88,750 | |||
Total | 1,03,8,750 |
Sales Book
Date |
Particulars | Inv. No. |
L.F. | Details
Rs. |
Amount Rs. |
2013 | |||||
Mar. 10 | Mehta | ||||
20 Bush Shirts | |||||
@ Z 1,750 each |
408 |
9 |
35,000 |
||
40 Hand towels | |||||
@ Z 100 each |
4,000 |
39,000 |
|||
“17 | Andley | ||||
40 Trousers | |||||
@ Z 1,000 each |
409 |
12 |
40,000 |
||
10 Neck-ties | |||||
@ Z 600 each |
6,000 |
4,600 |
|||
” 22 | Apte | ||||
10 Bush Shirts | |||||
@ Z 2,500 each | 410 |
15 |
25,000 |
||
200 metre long cloth | |||||
@ Z 150 per metre |
30,000 |
55,000 |
|||
Total |
1,40,000 |
Purchases Returns Book
Date |
Particulars | Debit Note No. | L.F. | Amount
Rs. |
Amount Rs. |
2013 | |||||
Mar. 13 | Kadam | ||||
4 Shirts |
22 |
8 |
|||
@ Z 1,500 each |
6,000 |
||||
Total |
6,000 |
Sales Returns Book
Date |
Particulars | Credit Note No. | L.F. | Amount
Rs. |
Amount Rs. |
2013 | |||||
Mar. 18 | Manohar | ||||
8 Nick-ties @ Z 550 each |
34 |
7 |
4,400 |
||
4 Shirts @ Z 2,500 each |
10,000 |
14,400 |
|||
” 28 | Apte | ||||
2 Bush Shirts @ Z 2,500 |
35 |
15 |
5,000 |
||
” 30 | Andley | ||||
2 Nick-tie @ Z 600 |
36 |
12 |
1,200 |
||
Total |
20,600 |
Ledger Accounts
Dr . Kadam Cr
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 13 |
To Purchase Returns A/c | (PRB 3) | 6,000 |
2013 Mar. 6 |
By Purchases A/c | (PB 8) | 35,000 |
Dr. Mehta Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 10 |
To Sales Account | (SB23) | 39,000 | 2013 |
Dr. Andley Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013
Mar.17 |
To Sales Account | (SB23) | 46,000 | 2013
Mar. 30 |
Mar. 30 By Sales Returns Account | (SRB 10) | 1,200 |
Dr. Manohar Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 18 |
By Sales Returns A/c | (SRB 10) | 14,400 |
Dr. Apte Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 22 |
To Sales Account | (SB 23) | 55,000 | 2013
Mar. 28 |
By Sales Returns Account | (SRB 10) | 5,000 |
Dr . Gyani Cloth Stores Account Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 30 |
By Purchases A/c | (PB8) | 6,88,750 |
Dr . Sales Account Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 31 |
By Sundries as per Sales Book | (SB 23) | 1,40,000 |
Dr. Purchase Account Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 31 |
To Sundries as per Purchases Book | (PB 10) | 10,38,750 | 2013 Mar. 31 |
By Sundries as per Sales Book | (SB 23) | 1,40,000 |
Dr. Purchases Returns Account Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2013 Mar. 31 |
By Sundries as per Purchases Returns Book | (PRB 3) | 6,000 |
Dr. Sales Returns Account Cr.
Date | Particulars | J.F | Rs. | Date | Particulars | J.F | Rs. |
2011 Mar. 31 |
To Sundries as per Sales Returns Book | (SRB 10) | 20,600 |