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Returns, discounts and sales tax
Recording sales and purchases
returns
The double-entry required to record a sales or purchase return will depend upon
whether the returned goods were initially sold/purchased on credit or for cash.
Originally a cash Originally a credit
transaction transaction
Sales returns Dr Sales returns Dr Sales returns
(returns inwards) Cr Cash Cr Receivables
Purchases returns Dr Cash Dr Payables
(returns outwards) Cr Purchases returns Cr Purchases returns
Illustrations and further practice
Now try TYU 1 from Chapter 5 of the Study Text.
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