Goods returned by debtors are recorded in which subsidiary book and why?

Asked by Topperlearning User | 11th Jul, 2016, 04:49: PM

Expert Answer:

Sales return book is a subsidiary book which records goods returned by the customers (i.e. debtors) and which had been sold on credit. Sales return book does not record return of goods sold on cash basis nor does it record return of any assets sold. A credit note is issued to the customers (i.e. purchaser) when the goods purchased by them is returned. It is the basis (i.e. source document) for recording an entry in sales return book. Therefore, goods returned by debtors are recorded in sales return book.

Answered by  | 11th Jul, 2016, 06:49: PM