Question

Goods worth 1000 found defective were returned to malhotra &Co. and the balance of the amount due to them was settled by issuing a cheque in their favour? journalise​

Answer 1

Answer:

Malhotra & Co. A/C Dr 1000

To purchase return A/C 1000

Answer 2

Malhotra & Co.A/C                           -----Dr                 1000

        To purchase return A/C                                                1000

(Defective goods returned to Malhotra & Co.)

GIVEN: Goods worth 1000 found defective were returned to Malhotra &Co. and the balance of the amount due to them was settled by issuing a cheque in their favor.
TO FIND Journal Entry of the given transaction.
SOLUTION:

As we are given in the question,

The business firm returns the goods worth Rs.1000 to Malhotra & Co. as they were defective.

In this question,

The golden rule of accounting along with a double entry algorithm will be used and accordingly.

Therefore,

The journal Entry for the returned goods will be:

Malhotra & Co.A/C                           -----Dr                 1000

        To purchase return A/C                                                1000

(Defective goods returned to Malhotra & Co.)

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