Sales and sales Return Books by subsidiary books

➪ Types sales By The Company

• Sales of ​​finished goods major sources of income
• sale of the asset(machine,land and building Etc) other sources of income

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I .Sales Return Books

Sometimes The sales Goods Are Substandard And Damaged Those Goods Are Return To customer .Details Of The Goods To Be Returned Are Recorded In The sales Return Book

Example Of Furniture Manufacturing Company

1. investment $50000

2. Purchased 1000 kg wood $ 3000 From wood cutter company

3. direct wages paid $1800

4. making 100 doors per $20

5. making 150 Chair per $15

6. making 15 Dining table per $105

7. making 10 shelves per $90

8. making 5 shelves $450 for jkl company order to desire

sales entry

9. 5 shelves sale to jkl company $450 (on cash)

10. 25 doors sale to gk department store $500 (on credit)

11. 10 doors and 50 Chair sale to south model store $950 (on creedit)

12. 3 Dining table sale to customer $315 (on cash)

Sales Return entry

13. 5 doors Return from gk department store $100 for damage

14. 1 doors and 6 Chair Return from south model store $110 for damage and loss quality

15. 1 Dining table Return from Cutomer $105

clearific !

4,5,6,7,8 entry Not Necessary On Journal Ledger, It is given to find the closing stock

• Not all products produced by the company can be sold, some products are in moderation and it is called closing stock

  How to calculate closing stock:

for example

• manufacturing 10 chair $1000 , sale 8 chair $1000 remaining 2 chair is closing stock(200) You know the details of the trading account

View the journal and ledger working file in pdf format

view PDF file

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sales & sales return books

I .Gk Department Store A/C

date	particular	outward Invoice No	LF	quntiy	Amount
0/0/0	25 Doors Sale To Gk Department Store (500/25=20)	000/00|00	05	25	500
Total Credit sales					500
	Discount Allowed		-	-	-
	sales return (5*20=100)	000/00|00	07	5	100
	payment received from Gk Department Store	-	-	-	-
Gk Department Store total Receipt(debtors)					400

I . South Model Store A/C

date	particular	outward Invoice No	LF	quntiy	Amount
0/0/0	sale to South Model Store	000/00|00	05
	10 Doors (10*20=200)	-	-	10	200
	50 Chair(50*15)	-	-	50	750
total credit sales					950
	Discount Allowed	-	-	-	-
	sales return	000/00|00	07	-	-
	1 Doors (1*20=20)	-		1	20
	6 Chair (6*15=90)	-	-	6	90
	payment received from from South Model Store	-	-	-	-
South Model Store total Receipt(debtors)					840

Information Find Out By Ledger

• total sales $2215
• total sales return $315
• total debtors $1240

debtors A/C

particular	amount
South Model Store A/C	840
Gk Department Store A/C	400
total debtors	1240

Information Find Out By Subsidiary Book

• credit sales $1450

find out credit sales

particular	amount
tkl South Model Store A/C	950
Gk Department Store A/C	500
total credit sale	1450



• credit sales return $210

find out credit sales return

particular	amount
tkl South Model Stroe A/C	110
Gk Deparment Store A/C	100
total credit sale return	210

trial balance

Date	Particular	debit	credit
		-
	cash	45860	-
	capital	-	50000
	wages	1800	-
	purchases	3000	-
	sales	-	2215
	debtors	1240
	sales return	315	-
		-
		52215	52215

adjustment

1. closing stock $5275

trading & p/lA/C

Debit			credit
particular	Amount	particular	Amount	Amount
purchsed	3000	sales	2215
wages	1800	sales return	315	1900
G/P	2375	closing stock		5275
	7175			7175
N/P	2375		G/P	2375

balancesheet

liability	Amount	asset	Amount
capital	50000	by cash	45860
N/P	2375	debtors	1240
		closing stock	5275
	52375		52375

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