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