Delhi
Posted by: Umair A. on 05.04.2021
Ask a Question
Selling the product in cash, cash/bank A/c dr. To sales. And in credit sale customer A/c dr. To sales a/c.
Now if the company buys back its own product which was sold in cash then inventory A/c dr. To cash A/c. And if it was a credit sale then goods return A/c dr. To customer a/c.
If the sold items are returned by the customer and the sale value is to be given back, it is to be treated as sales return. The entry is Dr. Sales Cr. Cash. If it was credit sale, Dr. Sales Cr. Accounts Receivable. Or it is purchase, Dr. Inventory Cr. Cash or Accounts Payable if it's a credit purchase.
Get 5 credit points for each correct answer. The best one gets 25 in all.
Post an enquiry and get instant responses from qualified and experienced tutors.
Post Requirement
