Sales Return Book | Subsidiary Books | Examples

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Sales Return Book is that book in which we record the goods returned by the customers or buyers. It is also called “Return Inward Book”, “Sale Return Journal”  and “Sale Returns Day Book”. Our customers need to return goods when these goods are not up to the level of sample goods or defective goods received by the customers.

The process of Sales Return  : –

When goods returned customer then he will issue the Debit/Credit note against these goods to the supplier of the goods. We will Debit the account of Sale return and credit the Customer or Buyer account.

What Is Debit Note or Credit Note: –

When the buyer issues a Debit/Credit Note against Purchase Return Then it will be the Debit note for the buyer and Credit Note for the Supplier Because of buyer will Debit the Supplier like below:

  • Journal Entry for Purchase Returns In the books of Buyer/Customer: –

DD/MM/YY  Supplier’s A/c                       Dr      XXXX

                             To Purchase Return A/c                      XXXX

and Supplier will Credit the Buyer (It is Double Entry system)

  • Journal Entry for Sales Returns In the books of Supplier/Vendor : –

DD/MM/YY  Sales Returns A/c                Dr      XXXX

                             To Buyer’s A/c                                      XXXX

So, Debit/Credit Note is Debit Note for the one party and Credit Note for the other party.

In sales Return case it will be credit note for us

The Debit/Credit Note Format as shown below:

Sales Return Book Debit Credit Note Format  - Sales Return Book | Subsidiary Books | Examples
Sales Return Book – Debit- Credit Note Format

Example:-

From the following particulars, prepare the Sales Return Book of a Furniture merchant M/s Bharaj Furniture Store –  Hoshiarpur Punjab India:

01/04/2018 The following Goods returned to us by M/s A & Co. – “Patiala Punjab India” because these are defective.

10 pcs of the Chairs @ Rs 200 per pcs

10 pcs of the Table @ Rs 250 per pcs 

04/04/2018 The following Goods returned to us by M/s B & Co.- “Hoshiarpur Punjab India” because these are defective.

2 pcs of the King Size Bed @ Rs 15000 per pcs

First of all, Buyer will generate Debit/ Credit note of these goods after that He will send these goods to us and when we will receive goods and Debit/Credit Note against it then we will post these transactions into the Sales Return Book. I will show you step by step as follows: –

Debit Credit Note Ex 1  - Sales Return Book | Subsidiary Books | Examples
Debit- Credit Note No. 1
Debit Credit Note No. 2 - Sales Return Book | Subsidiary Books | Examples
Debit- Credit Note No. 2

Now we will post it into the Purchase Return Book.

*Note: – here we are showing posting of both the transaction together but in real We have to post each transaction individually when the debit note issued to the supplier means date wise.

Sales Return Book Example  - Sales Return Book | Subsidiary Books | Examples
Sales Return Book Example

 

If you have any question about this topic please ask it in the comment section below.

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