What is the effect of sales return?

Open in App

Solution

Sales return leads to reduction in the net income as they are directly deducted from the sales made by the business.

Also read:

Cash Book

Purchase Book

Sales Book and Sales Return Book

Cash Flow Statement

Ledger in Accounting

Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.

Suggest Corrections

Similar questions

What will be the effect on trial balance if purchases return of Rs. 10,000 has been wrongly posted to the debit of sales return account but correctly entered in the customers account ?

The total of Sales Return book is posted to the ___ of sales return account.

Error of undercasting sales return book is rectified by _____ the sales returns account.

Sales return account is always ___.

What will be the gross profit ratio if, total sales is Rs 2,60,000, cost of net goods sold is Rs 2,00,000 and Sales return is Rs 10,000?

Join BYJU'S Learning Program