The credit notes issued are used to prepare sales return book.

True

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False

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Solution

The correct option is A True
When defective goods are returned by the customer a note is prepared by a supplier which is called as "credit note". This note is prepared and sent to customer indicating that his/her account has been credited in firm's books. A duplicate copy of the credit note is retained and used as a source document for recording the transactions in the books of accounts.

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2017
March 1	Sold to Chandra Light House :−
	50 Tubelights @ ₹ 60 each Less : 20%
	20 Heaters @ ₹120 each Less : 25%
5	Purchased from Charat Ram Electric Co. :−
	25 Table Fans @ ₹ 600 each
	20 Ceiling Fans @ ₹800 each
10	Chaudhary & Sons purchased from us :−
	80 Dozen Bulbs @ ₹ 90 per Dozen
12	Purchased from Ram Lal & Sons one Typewriter for ₹ 6,000 on credit, for office use.
16	Sri Ram & Sons sold to us :−
	10 Electric Irons @ ₹ 180 each less : 10%
20	Chandra Light House returned :−
	5 Tubelights sold on March 1.
22	Sold goods to Jai Bhagwan & Co. for cash ₹ 10,000.
25	Returned to Sri Ram & Sons 2 Electric Irons purchased on March 16.

2018
Jan. 1	Bought from M/s. Uma Datt, Mumbai, on credit:
	1,000 Ragisters @ ₹ 80 each
	50 Reams Paper @ ₹ 250 per ream
	Less: Trade Discount 25%
	Add: IGST @ 5%
Jan. 2	Sold to Shri Dayal, Bengaluru:
	250 Registers @ ₹ 85 each
	5 Reams paper @ ₹ 300 per ream
	Charged CGST and SGST @ 2.5% each
Jan. 8	Bought from BILT, Delhi:
	100 Reams Ruled Paper @ ₹ 600 per ream
	Less: Trade Discount 15%
	Plus IGST @ 5%
Jan. 12	Sold to Gupta Bros., Delhi:
	250 Registers @ ₹ 85 each
	50 Reams Ruled Paper @ 700 per ream
	Less: Trade Discount 5%, charged IGST @ 5%
Jan. 18	Sold to Ram Saran Das:
	20 copies Double Entry Book Keeping @ ₹ 85 each
Jan. 25	Bought from Hari Ram, Delhi:
	1,000 pens @ ₹ 10 each
	Less: Trade Discount 15%
	Plus IGST @ 5%
Jan. 31	Sold to Rishi Kumar, Bengaluru:
	300 Registers @ ₹ 90 each
	50 Reams Ruled Paper @ ₹ 700 per ream
	20 Reams Paper @ ₹ 300 per ream
	Trade Discount 10%, charged CGST and SGST @ 2.5% each

Rectify the following errors.

(a) Credit Sales to Mohan Rs. 7,000 were recorded in purchase book.

(b) Credit Purchase from Rohan Rs. 9,000 were recorded in the sales book.

(d) Goods returned from Mahesh Rs. 1,000 were recorded in purchase return book.

Rectify the following errors:

(a)	Credit Sales to Mohan Rs 7,000 were recorded in purchases book.
(b)	Credit Purchases from Rohan Rs 900 were recorded in sales book.
(c)	Goods returned to Rakesh Rs 4,000 were recorded in the sales return book.
(d)	Goods returned from Mahesh Rs 1,000 were recorded in purchases return book.
(e)	Goods returned from Nahesh Rs 2,000 were recorded in purchases book.

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