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Question
What is a credit note?
Solution
A credit note is prepared by the seller and sent to the buyer when goods are returned indicating that the buyer’s account is credited in respect of goods returned. Credit note is a statement prepared by a trader who receives back the goods sold from his customer. It contains details such as the description of goods returned by the buyer, quantity returned, and also their value.
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RELATED QUESTIONS
Sales return book is used to record __________.
The source document or voucher used for recording entries in sales book is __________.
What is sales returns book?
Record the following transactions in the sales book and sales returns book of M/s. Ponni & Co., and post them to ledger.
| 2017 | Particulars |
| Aug. 1 | Sold goods to Senthil as per Invoice No. 68 for ₹ 20,500 on credit |
| Aug. 4 | Sold goods to Madhavan as per Invoice No. 74 for ₹ 12,800 on credit |
| Aug. 7 | Sold goods to Kanagasabai as per Invoice No. 78 for ₹ 7,500 on credit |
| Aug. 15 | Returns inward by Senthil as per Credit Note no. 7 for ₹ 1,500 for which cash is not paid |
| Aug. 20 | Sold goods to Selvam for ₹ 13,300 for cash |
| Aug. 25 | Sales returns of ₹ 1,800 by Madhavan as per Credit Note No. 11 for which cash is not paid |
Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for July 2017:
| 2017 July |
₹ | |
| 04 | M/s Gupta Traders returned the goods | 1,500 |
| 10 | Goods returned from M/s Harish Traders | 800 |
| 18 | M/s Rahul Traders returned the goods not as per specifications | 1,200 |
| 28 | Goods returned from Sushil Traders | 1,000 |
