Book-Keeping and Accountancy · Ch 5 — Subsidiary Books
Sales Returns (Returns Inward) Book
Sales Returns (Returns Inward) Book
When a customer returns goods sold to them on credit, the return is recorded in the Sales Returns Book, also called the Returns Inward Book.
Sales Returns (Returns Inward) Book
The Sales Returns Book is a subsidiary book in which goods earlier sold on credit and now returned by customers are recorded, on the basis of a Credit Note sent to the customer.
Credit Note
A Credit Note is a document sent by a seller to a customer, informing the customer that their account has been credited (reduced) by the stated amount because of goods returned or an overcharge corrected.
Format of the Sales Returns Book
| Date | Particulars (Name of Customer) | Credit Note No. | L.F. | Taxable Value (₹) | CGST (₹) | SGST (₹) | Total (₹) |
|---|
Illustration 4 — Preparing a Sales Returns Book
Continuing Illustration 2's customers (GST @ 12%), the following goods were returned:
- Apr 6 — Anil Traders returned goods, taxable value ₹1,500, Credit Note No. 21.
- Apr 14 — Vinod & Sons returned goods, taxable value ₹900, Credit Note No. 22.
Working: Anil Traders — CGST 6% of ₹1,500 = ₹90; SGST = ₹90; total = ₹1,680. Vinod & Sons — CGST = ₹54; SGST = ₹54; total = ₹1,008.
Sales Returns Book, for April
| Date | Particulars | Credit Note No. | L.F. | Taxable Value (₹) | CGST (₹) | SGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|---|
| Apr 6 | Anil Traders | 21 | 1,500 | 90 | 90 | 1,680 | |
| Apr 14 | Vinod & Sons | 22 | 900 | 54 | 54 | 1,008 | |
| Total | 2,400 | 144 | 144 | 2,688 |
Check: 1,680 + 1,008 = ₹2,688, and 2,400 + 144 + 144 = ₹2,688 — both agree. …
A subsidiary book recording goods earlier sold on credit and now returned by customers, based …
A document sent by a seller to a customer, informing them that their account has been credited by the stated amount due to goods returned or …