Page 113 - DMGT104_FINANCIAL_ACCOUNTING

Unit 6: Subsidiary Books

6.3.4 Sales Returns Book Notes

This is also known as Returns Inward Book. This book records all the transactions related to the
return of goods by the customers. As and when goods are returned by the customers, a credit
note is issued and the entry is made in this book. This book again contains the same columns
which a Purchases Returns Book contains. There is only one difference i.e. in place of Debit Note
No. the column is used to note the Credit Note No. The form of sales Returns Book is as follows:
Sales Returns Book
Date Particular Credit Note No. L.F. Details ( ) Amount ( )
I II III IV V VI

!
Caution Credit Note: As and when goods are returned by the customers, a credit note is
being sent to him. Credit note means that his account has been credited with the amount
of goods return.

Example: Enter the following transactions in the Sales Returns Book
2011

July 01 Ramesh returned goods 6500
July 10 Allowance claimed by Murthy 9,500 accepted
July 15 Suresh returned us goods worth 2000
July 20 Received a Debit note from Narayan for 600

July 25 Received goods returned by Chandra 500
July 30 Allowance granted to Mohan for breakage 500
July 30 Received goods returned by Arvind and paid 1,600 in full settlement.
Solution:

Sales Returns Book
Date Particulars Credit Ledger Amount
Note No. Folio ( )
2011
Jul 1 Ramesh 6,500
Jul 10 Murthy 9,500
Jul 15 Suresh 2,000
Jul 25 Chandra 500
Jul 30 Mohan 500
Total 19,000

Notes: 1. Transaction of July 20, receiving a debit note is not a transaction. Sales Returns book is
written on the basis of Credit note.
2. Transaction of July 30, it is a cash transaction. It is not to be entered in sales returns book.

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