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Stationary/ Food Supplies

Under sales o...

Question

Under sales or return or approval basis when the transactions are few and the seller at the end of the accounting year reverse the sale entry, then what will be the accounting treatment for the goods returned by the customers on a subsequent date?

A

No entry will be passed for such return of goods

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B

Entry for return of goods is passed by the the seller

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C

Only the stock account will be adjusted

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D

None of these.

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Solution

The correct option is B No entry will be passed for such return of goods
No entry is made as entries have been already passed when the sales took place.

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