Page 55 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes
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Caution Debit Note: Whenever goods are returned to the supplier, a letter which is known
as the debit note is also sent along with returned goods. The purpose of this note is to
inform the supplier about this deduction or debit given to his account. This note contains
the following particulars such as:
(a) Name and address of the supplier
(b) Description of the goods returned
(c) Rate and total value
(d) Invoice No., along with date

(e) Signature

3.6 Sales Returns Book

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. Amount ( )
I II III IV V

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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.

3.7 Bills Receivable Book

A bill of exchange accepted by a customer is called bills receivable. When bills are received from
debtors and number of such bills received is larger (big) then such bills are recorded in a
separate book, known as bills Receivable Book. All such bills are totalled for a particular period
and are posted in the accounts of the debtors from whom such bills are received. Following is
the form of Bills Receivable Book.
Bills Receivable Book
Date Date From Drawer Acceptor Endorser Date Tenor or Due Where L.F. Cash Amount Re-
of of Whom (s) of Terms of date payable Discount of bill marks
Receipt Receipt Received Bill Bill allowed ( )

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