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Principles

Principles. of. Accounts. Returns. Inwards. Journal. Returns inwards and credit note. Returns inwards. Sometimes we will agree to customers returning goods to us . This might be for reasons such as the following: -Goods were of the wrong type. -They were of the wrong colour.

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Principles

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  1. Principles of Accounts

  2. Returns Inwards Journal

  3. Returns inwards and credit note Returns inwards Sometimes we will agree to customers returning goods to us . This might be for reasons such as the following: -Goods were of the wrong type. -They were of the wrong colour. -Goods were faulty. -Customer had bought more than necessary. Credit note Credit note is a document received by a customer,showing allowance given by a supplier in respect of unsatisfactory goods.

  4. Returns inwards journal Returns Inwards journal Eachcredit note posted separately Totalonly to Returns Inwards Account Sales Ledger Customer’s Account Debit Credit XXX General Ledger Returns inwards Account Debit Credit XXX

  5. Example: The following balances were outstanding by debtors on 31May 2004. A.Sin $188 C.Chung $88 S.Tin $118 The following transactions took place during June 2004: 2004 Jun 10 Goods returned to us by: A.Sin $12 ; C.Chung $17 Jun 24 Goods returned to us by S.Tin $5

  6. Jun 10 A.Sin SL1 12 10 C.Chung SL2 17 24 S.Tin SL3 5 GL1 30 Transferred to returns inwards account 34 C.Chung A.Sin 1 2 S.Tin 3 Returns Inwards 1 Returns Inwards Journal Sales Ledger 2004 $ Jun 1 Bal b/d 188 2004 $ Jun 10 Returns 12 Inwards 2004 $ Jun 10 Returns 17 Inwards 2004 $ Jun 1 Bal b/d 88 General Ledger 2004 $ Jun 1 Bal b/d 118 2004 $ Jun 24 Returns 5 Inwards • $ • Jun30 Returns for 34 the month

  7. After doing the example, I think you will know more about Returns Inwards Journal. Next page will have a simple exercise.I hope you will learn how to do it. Go!Go!Go!

  8. Exercise: The following balances were outstanding by debtors on 30April 2006. C.Chen $56 K.Kwoon $145 K.Wing $89 The following transactions took place during May 2004: 2006 May 14 Goods returned to us by: C.Chen $5 ;K.Kwoon $11; May 24 Goods returned to us by K.Wing $14

  9. Answer: SL1 May 14 C.Chen 5 SL2 14 K.Kwoon 11 SL3 24 K.Wing 14 30 Transferred to returns inwards account GL1 30 C.Chen 1 K.Kwoon 2 K.Wing 3 Returns Inwards 1 Returns Inwards Journal Sales Ledger 2006 $ May 1 Bal b/d 56 2006 $ May 14 Returns 5 Inwards 2006 $ May 1 Bal b/d 145 2006 $ May 14 Returns 11 Inwards General Ledger 2006 $ May 1 Bal b/d 89 2006 $ May24 Returns 14 Inwards 2006 $ May30 Returns for 30 the month

  10. Do you finish this Exercise? I think you must know how to do it and get a good result.If not, never mind.Just practice more and you will improve actually.

  11. The End By Cheung Wing Chung

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