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Sales Return (Journal) Book

Sales return books are used to record the goods returned by customers to them on credit.

On receipt of goods from the customer, a credit note is prepared. The difference between the credit not and the debit note is that the former is prepared by the seller and the latter is prepared by the buyer. The credit note is also prepared in duplicate and contains detail relating to the name of the customer, details of the merchandise received back and the amount. Each credit note is serially numbered and dated. The source document for recording entries in the sales return book is generally the credit note. The format of the sales return book is shown in figure 4.9

Sales Return (Journal) Book

Date

Credit

note No.

Name of the Customer

(Account to be Credited)

L.F.

Amount

Rs.

 

 

 

 

 

Fig 4.9: Format of Sales return (journal) book

 

Refer to the sales (journal) book of Koina Supplier of you will find that two water purifiers were sold to Raman Traders for Rs 2,100 each, out of which one purifier was returned back due to the manufacturing defect (credit note no. 10/2005). In this case, the sales return (Journal) book will be prepared as follows:
 
Sales Return (Journal) Book

Date

Credit

note No.

Name of the Customer

(Account to be Credited)

L.F.

Amount

Rs.

 

10/2005

Raman Traders

 

2,100

_____

2,100

_____

 

Posting to the sales return journal requires that the customer's account be credited with the amount of returns and the sales return account be debited with the periodical total in the same way as is done in case of posting from the purchases journal.
 
Raman Traders Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

         

Sales return

 

2,100


Sales returns Account
  Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Apr 01

 

 

Sundries as per Sales return book

 

 

2,100

       




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