Page 87 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 8: Subsidiary Books

8.5 Sales Return Book Notes

It is a book that registers the goods sold on credit and received from the buyers. The sales return

from the buyers is due to not confirming to the specifications mentioned at the moment of
placement of the order. It is known as sales return journal.
Pro forma of the Sales Return Book

Date Name of Ledger Credit Noted No Details Amount `
the Customer Folio

The following are the various components dealt in the design of the book:

Name of the customer: It includes the most important information about the buyer who returned
the goods/raw materials, because of non-confirmation to specifications of the placed order.

Ledger folio: It contains the page number of the journal entry posted.
Credit Note No: It is nothing but a statement sent by one person to another person showing the
amount credited to the account of the latter along with a brief explanation. The credit notes are
used for sales return in order to intimate related abatement and are similar to invoice although
they are usually printed in red ink.
Steps involved in the sales return book:
1. Sales return of the enterprise from the individual buyers are recorded immediately after
the transactions.
2. The monthly total of the sales return is posted into the debit side of the sales return account
in accordance with the rule of real account.
8.6 Trade Bills Book

The trade bills book can be classified into two categories, viz Bills receivable book and Bills

payable book.
1. Bills Receivable Book: It is a book maintained especially for promissory notes and bill of
exchanges accepted by the customers out of their dues, as an outcome of credit sale of the
enterprise. The bills receivable and promissory notes are nothing but the resultant of the
credit sale transactions of the enterprise not only to safeguard the interest of enterprise, but
also to collect the dues from the customers as per the terms of the trade agreed earlier.

Proforma of the Bills Receivable Book
Sl. Date From whom Acceptor Date of Term Date of the Where Amt. How Dis-
No Received the bill Maturity Payable ` posed

The various components of the bills payable book are as follows:
(a) From whom received: Either the bill or promissory received from whom? The name of
the party should be entered at the moment of receiving the negotiable instruments of
the trade.
(b) Acceptor: The person/institution who/which accepts the terms of the bill to make the
payment.

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