Recording of Transactions-II

Refer to the purchases (journal) book of Kanika Traders you will notice that mini size T.V.’s and tape- recorders were bought from Neema Electronics for Rs. , , However, on delivery mini T.V.’s and tape recorders were found defective and were returned back vide debit note no. / . In this case, the purchases return books will be prepared as follows : Purchases Return (Journal) Book Debit Name of the Supplier Note (Account to be debited) No. / Neema Electronics , , Posting from the purchases returns journal requires that the supplier’s individual accounts are debited with the amount of returns and the purchases returns account is credited with the periodical total. Neema Electronics Account , Return Purchases Return Account Sundries as , per purchase returns book All credit sales of merchandise are recorded in the sales journal. Cash sales are recorded in the cash book. The format of the sales journal is similar to that of the purchases journal explained earlier. The source document for recording entries in the sales journal are sales invoice or bill issued by the firm to the customers. The date of sale, invoice number, name of the customer and amount