Question
What is meant by a Sales Return Book? When is it opened?
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Answer
Sales Return Book or Returns Inward Book is a subsidiary book maintained to record the goods or materials returned by the purchaser that had been sold on credit. This book is maintained if the return of goods is frequent otherwise it can be recorded in the Journal.
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Journalise the following transactions, post them into Ledger, balance the accounts and prepare a Trial Balance:
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2017
|
|
₹
|
|
March 1
|
Shyam Sunder & Sons commenced business with cash
|
80,000
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March 2
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Purchased goods for cash
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36,000
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March 3
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Machinery purchased for cash
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4,000
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March 4
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Purchased goods from: Raghu
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22,000
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Dilip
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30,000
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March 6
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Returned goods to Raghu
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4,000
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March 8
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Paid to Raghu, in full settlement of his account
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17,500
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March 10
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Sold goods to Mahesh Chand & Co. for ₹ 32,000 at 5% trade discount
|
|
|
March 13
|
Received cash from Mahesh Chand & Co.
|
19,800
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|
Discount allowed
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200
|
|
|
March 15
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Paid cash to Dilip
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14,850
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Discount received
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150
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March 20
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Sold goods for cash
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25,000
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|
March 24
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Sold goods for cash to Sudhir Ltd.
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18,000
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March 25
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Paid for Rent
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1,500
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March 26
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Received for Commission
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2,000
|
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March 28
|
Withdrew by Proprietor for his personal use
|
5,000
|
|
March 28
|
Purchased a fan for Proprietor's house
|
1,200
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Enter the following transactions in Return Inward Book of M/s Kanitkar & Co. of Mumbai (Maharashtra) assuming CGST @ 2.5% and SGST @ 2.5% and post it into Ledger:
|
2018
|
|
|
Jan. 5
|
Goods returned to us by Giriraj & Co., Pune (Maharashtra) worth ₹ 40,000, less 10% trade discount |
|
Jan. 10
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Shah Brothers, Jaipur (Rajasthan) returned goods, being not according to sample ₹ 30,000 |
|
Jan. 16
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Allowance claimed by Jai Singh & Co., Mathura (U.P) on account of a mistake in the invoice ₹ 10,000 |
|
Jan. 20
|
Good returned by Gopalsons, Mumbai being defective ₹ 20,000 |
Mohit has the following transactions, prepare accounting equation:
(Ans: Cash ₹ 1,32,500 + Goods ₹ 32,500 + Furniture ₹ 10,000 = ₹ 1,75,000; Liabilition = Capital ₹ 1,75,000)
|
a.
|
Business started with cash
|
₹ 1,75,000
|
|
b.
|
Purchased goods from Rohit
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₹ 50,000
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|
c.
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Sales goods on credit to Manish (Costing ₹ 17,500)
|
₹ 20,000
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|
d.
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Purchased furniture for office use
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₹ 10,000
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|
e.
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Cash paid to Rohit in full settlement
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₹ 48,500
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|
f.
|
Cash received from Manish
|
₹ 20,000
|
|
g.
|
Rent paid
|
₹ 1,000
|
|
h.
|
Cash withdrew for personal use
|
₹ 3,000
|