Sales Returns Books Format

Sales Returns Book is also an example of Special Journal. Here, from the point of seller once the sold goods to buyer or customer (Accounts Receivable), then the buyer may find that some goods unsatisfactory or lower quality or goods damaged during in transit or the order is not according to the buyer’s order, then buyer sends the goods to the seller intimating him the reason of returning the goods and requesting him for replacing goods. This intimation from the buyer to the seller is called Debit Note. In such case, if the seller accepts the request of the buyer, then he informs to the buyer by sending a Credit Note. In this way, Sales Return takes place. The Accounting Department also receives the copy of Credit Note and pass following Accounting Journal Entry in the Sales Returns Book or Journal of business as shown below:

 

Sales Returns Journal Entry

                                                  Sales Returns a/c    XXX

                                                                            Mr. B      XXX

(Goods Returned By The Customer Due To Unsatisfactory Condition)

Example: If Mr. A (Seller) sold 10 Chairs to Mr. B on Credit Basis for Rs. 50000 (Rs. 5000 each). Mr. B Customer (Accounts Receivable) finds that 2 chairs are damaged during transit, then he returned 2 chairs to Mr. A by sending a Debit Note and claim for replacing 2 fans. If Mr. A accepts the claim of Mr. B, and sends Mr. A a Credit Note intimating him that he accept his claim and replaced the 2 chairs. Then, after receiving the copy of Credit Note, Accounting Department of the Business, an entry is passed in the Sales Returns Journal of Business as shown below:

                                                     Sales Returns a/c    10000

                                                                                Mr. B        10000

(2 Chairs Returned By Mr. B Due To Damaging)

You Can Also Read Out, "Purchase Returns Book Format"

This Journal Entry is transferred to the Sales Returns Account or Ledger as shown below:

Sales Returns Account

                         Rs.                                                                                           Rs.

Mr. B              10000

If there is no Sales Returns during the Current Accounting Period, then Sales Returns Ledge is closed by passing Closing Entries and it is transferred to Income Statement / Profit And Loss Account at the end of Accounting Period.

Sales Returns Book Format is the same as in case of Sale Book Format.

Date          Particulars / Descriptions                                  L/F               Debit         Credit

                                                                                                                   Rs.            Rs.

Sales Returns Book is also known as Return Inward Book as the seller accepts the claim of his buyer and replace the goods.