good returned by mr.john 2500.journal entry
Answers
Answer:
Journal Entry for a goods return:
Before recording a journal entry, it is important to understand the different types of Goods Return.
Two Types of Goods Return:
Purchases Return or Return outward.
Sales Return or Return inward.
Purchases Return Goods
For Examples :
Purchases goods from Mrs. Kuheli Rs. 2000
Journal entry:
Purchases A/c .. Dr 2000
To Kuheli A/c 2000
[Being the purchases goods from Kuheli]
Then
Goods returned to Mrs. Kuheli Rs. 900
Journal Entry:
Kuheli A/c ..Dr 900
To Purchases Return A/c 900
[Being the goods return to Kuheli Rs.900]
Kuheli A/c Debit because the Kuheli is (Personal Account) and it is Receiver, so the Receiver also Debits based on Debit and Credit Rule.
Purchases Return A/c Credit because the Purchases Return are (Nominal Account) and one type of Income and Income is also Credit. Based on the Debit and Credit or Golden Rules.
Sales Return:
Sold goods to Manju Rs. 9000
Manju A/c... Dr 9000
To Sales A/c 9000
[Being the goods sold to Manju]
now:
Sold Goods return by Manju Rs. 4000
Sales Return A/c …Dr 4000
To Manju A/c 4000
[Being the sold goods return by Manju]
Sales Return A/c Debit because the Sales Return are (Nominal Account) and one type of Expenses and Expenses is also Debit. Based on the Debit and Credit or Golden Rules.
Manju A/c Credit because the Manju is (Personal Account) and it is Giver, so Giver also Credit based on Debit and Credit Rule.
Golden Rules:
Personal Account:
Debit the Receiver, Credit the Giver
Real Account:
What cames in Debit and what Goes out Credit
Nominal Account:
Expenses & Loss Debit, and Income, Profit Credit
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