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Question
Write the difference between return inwards and return outwards
Solution
| Basis of Difference | Return Inwards | Return Outwards |
| Meaning | Goods sold to the customers, are returned by them. | Goods purchased are returned to the suppliers. |
| Balance | It has debit balance. | It has credit balance. |
| Treatment | It is deducted from Sales in the Trading Account. | It is deducted from Purchases in the Trading Account. |
| Issued | Credit note is prepared by the seller. | Debit note is prepared by the buyer. |
| Reduction | It reduces the payment from the Debtors. | It reduces the payment made to the Creditors. |
| Term | It is also termed as Sales Returns. | It is also termed as Purchases Returns. |
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RELATED QUESTIONS
Purchases book is used to record __________.
A periodic total of the purchases book is posted to the _____________.
Which of the following statements is not true?
What is a purchase book?
What is an invoice?
Give the format of purchases book.
Enter the following transactions in the Purchases book of M/s. Subhashree Electric Co., which deals in electric goods.
| 2017 | Particulars |
| April 5 | Purchased from Karthik Electric Co., on credit |
| 10 Electric iron box @ ₹ 2,500 each | |
| 5 electric stoves @ ₹ 2,000 each | |
| April 19 | Purchased on credit from Khaitan Electric Co., |
| 3 electric heaters @ ₹ 6,000 each | |
| April 25 | Purchased from Polar Electric Co., on credit |
| 10 Fans @ ₹ 2,000 each | |
| April 29 | Purchased from M & Co. for cash |
| 10 electric stoves @ ₹ 3,000 each |
Prepare necessary subsidiary books in the books of Niranjan and also Sachin account and Mukil account from the following transactions for the month of February, 2017.
| 2017 | Particulars | ₹ |
| Feb. 1 | Purchased goods from Mukil Traders on credit | 12,480 |
| Feb. 4 | Goods sold to Sachin Traders on credit | 15,000 |
| Feb. 6 | Sold goods to Manish Traders on credit | 12,100 |
| Feb. 7 | Sachin Traders returned goods for which cash is not paid | 1,200 |
| Feb. 9 | Returned goods to Mukil Traders for which cash is not received | 1,500 |
| Feb. 10 | Sold goods to Manish & Co., on credit | 13,300 |
| Feb. 14 | Purchased from Mukil Traders on credit | 15,200 |
What do you understand by ledger folio?
What is difference between trade discount and cash discount?
Write the process of preparing ledger from a journal
Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017:
|
01 |
Bought from Rahul Traders as per invoice no. 20041 |
|
40 Registers @ ₹ 60 each |
|
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80 Gel Pens @ ₹ 15 each |
|
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50 note books @ ₹ 20 each |
|
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Trade discount 10%. |
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15 |
Bought from Global Stationers as per invoice no. 1132 |
|
40 Ink Pads @ ₹ 8 each |
|
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50 Files @ ₹ 10 each |
|
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20 Color Books @ ₹ 20 each |
|
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Trade Discount 5% |
|
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23 |
Purchased from Lamba Furniture as per invoice no. 3201 |
|
2 Chairs @ 600 per chair |
|
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1 Table @ 1,000 per table |
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25 |
Bought from Mumbai Traders as per invoice no. 1111 |
|
10 Paper Rim @ ₹ 100 per rim |
|
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400 drawing Sheets @ ₹ 3 each |
|
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20 Packet waters colour @ ₹ 40 per packet |
