What is return inward book? Explain briefly.
Asked by Topperlearning User | 11th Jul, 2016, 04:49: PM
Return inward book is known as sales return book. 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.
Answered by | 11th Jul, 2016, 06:49: PM
- Following transactions are of M/s Rakesh Kumar and Sons for the month of April, 2015. Prepare their Purchase Book: Apr. 5 Purchase on credit from M/s Raj Mills: 100 pieces long cloth @ Rs.80 50 pieces shirting @ Rs.100 Apr. 8 Purchased for cash form M/s Ambika Mills: 50 pieces muslin @ Rs.120 Apr. 15 Purchased on credit from M/s Sagar Mills: 20 pieces coating @ Rs.1,000 10 pieces shirting @ Rs.90 Apr. 20 Purchased on credit from M/s Bharat Typewriters Ltd.: 5 Typewriters @ Rs.1,400 each
- Name all the subsidiary books which do not record cash transactions.
- Name the subsidiary book which records only cash transaction.
- Goods purchased on credit are recorded in which subsidiary book and why?
- Goods sold on credit are recorded in which subsidiary book and why?
- What is the difference between a purchases book and purchases account?
- What is recorded in a journal proper?
- Goods returned by debtors are recorded in which subsidiary book and why?
- Goods returned to creditors are recorded in which subsidiary book and why?
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