Question

Answer in one sentence only :

State the source document require for recording transactions in sales return book.

Answer 1

When goods are received back from a customer, a note is prepared and the original copy of the same is sent to the party that returned the goods, i.e. the customer. This note is termed as credit note because the customer from whom the goods are received back, his/her account is credited with the amount written in the note. Thus, a duplicate copy of the credit note is used to record the transactions in the Sales Return Book.