Page 39 - NOTES- CASH BOOK

132 Accountancy

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. 10/2017). In this case, the sales return (Journal) book will be prepared
as follows :
Sales Return (Journal) Book

Date Credit Name of the customer L.F. Amount
No. (Account to be credited) Rs.
10/2017 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 Date Particulars J.F. Amount
Rs. Rs.
Sales Return 2,100

Sales Return Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
Sundries 2,100
as per sales
return book

Illustration 5
Enter the following transactions of M/s Hi-Life Fashions in purchases and purchases
return book and post them to the ledger accounts for the month of September 2014:
Date Details
2017 Purchase of following goods on credit from M/s Ratna Traders,
Sept. 01 as per Invoice No.714:
25 Shirts @ Rs.300 per shirt
20 Pants @ Rs.700 per pant
Less 10% trade discount
Sept. 08 Purchase of following goods on credit from M/s Bombay Fashion House,
as per Invoice No.327 ;

2018-19