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Returns Inwards Journal

Sales returns journal/book also known as returns inwards journal/book is used to record goods returned by customers for reasons such as the goods delivered to them are of the wrong colour or type, or are faulty or damaged.

The format of the returns inwards journal is almost the same as the sales day book with column headings as follow:

  • Date
  • Customer
  • Credit Note
  • Sales Ledger Folio
  • Amount

A credit note ( C/N) is issued to every customer who returns goods. It shows the amount of the returned goods which will be credited to the customer’s account to reduce the amount the customer owes.

The following shows a format of a returns inwards journal and how the entries are made.

Date

Particulars

C/N No.

Folio No.

Amount

20XX
Jul.10
"  19
"
25
"  31


Appleby Picking & Co
Bear Hugging Trading
Candy Many Store
David Goliath


0121
0122
0123
0124


SL08**
SL12
SL21
0128

$
50
30
90
20




GL20*

190

*GL20 = General Ledger Page 20 / **SL08 = Sales Ledger Page 8


Posting to ledgers.

· At the end of the accounting period the total of the sales returns journal or returns inwards journal is posted to the debit of the sales returns account or returns inwards account in the general ledger, and credited to accounts receivable account in the same ledger.

· The amounts of the credit notes issued to the customers who have returned the goods are credited to their respective accounts in the sales ledger.


General Ledger

Returns Inwards Account

20XX
Jul. 31


Per Returns Inwards Book for the month of July

Folio
RIB07~

$
190






~SRB07 = Sales Returns Book Page 7


Sales Ledger

Appleby Picking & Co.






20XX
Jul. 10


Sales returns

Folio
RIB07

$
50



Bear Hugging Trading






20XX
Jul. 19


Sales returns

Folio
RIB07

$
30



Candy Many Store






20XX
Jul. 25


Sales returns

Folio
RIB07

$
90



David Goliath






20XX
Jul. 31


Sales returns

Folio
RIB07

$
20























Sales returns book also known as returns inwards book is used to record goods returned by customers for reasons such as the goods delivered to them are of the wrong colour or type, or are faulty or damaged.

The format of a sales returns book is almost the same as the sales day book with column headings as follow:

Date

Customer

Credit Note

Sales Ledger Folio

Amount

A credit note ( C/N) is issued to every customer who returns goods. It shows the amount of the returned goods which will be credited to the customer’s account to reduce the amount the customer owes.

The following is a format of a sales returns book and how the entries are made.

Date

Particulars

C/N

No.

Folio

No.

Invoiced

Amount

20XX
Jul.10
"  19
"  25
"  31


Appleby Picking & Co
Bear Hugging Trading
Candy Many Store
David Goliath


0121
0122
0123
0124


SL08**
SL12
SL21
0128

$
50
30
90
20




GL20*

190

*GL20 = General Ledger Page 20 / **SL08 = Sales Ledger Page 8

Posting to ledgers.

· At the end of the accounting period the total of the sales returns book or returns inwards book is posted to the debit of the sales returns account or returns inwards account in the general ledger.

· The amounts of the credit notes issued to the customers who have returned the goods are credited to their respective accounts in the sales ledger.

General Ledger

Sales Returns Account / Returns Inwards Account

20XX
Jul. 31


Per Sales Returns Book for the month of July

Folio
SRB07~

$
190



~SRB07 = Sales Returns Book Page 7

Sales Ledger

Appleby Picking & Co.




20XX
Jul. 10


Sales returns

$
50

Ideal Traders




1991
Jan. 20


By Sales returns

$
52

Riaz & Co.




1991
Jan. 31


By Sales returns

$
100

Last Updated (Wednesday, 20 October 2010 16:54)