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Question

The details of goods returned by the customers to the business organization are recorded in _______ book.

A
Sales Returns Book
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B
Purchase returns books
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C
Journal proper
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D
All of the above
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Solution

The correct option is A Sales Returns Book

The customer may return the goods.

Thus, goods sold that are returned by the customer or buyer, are recorded in the Sales Return Book.

The Credit Note contains the name of the customer, details of goods returned and reason thereof. Each Credit Note is dated and serially numbered.


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Q.

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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