Question

Journalise the following transactions In the book of harpreet:-

Question no. (2)Goods wirth Rs 10,000 were returned to ram bros., as goods were hazardous for health of consumer.

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

# treatment for this question is same like purchases return

Ram bros A/c - Personal A/c , where Ram bros is the receiver of goods . therefore its debited

Purchases Return A/c - Real A/c , where goods goes out of the company therefore its credited

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In the books of Harpeet

Journal entry

Ram bros A/c  Dr    10000

        To purchases return A/c  10000

(being goods returned to ram bros )

Answer 2

Ram & Bros. A/C. Dr. Rs.10,000

To Purchase Returns A/C. Rs 10,000

(Being goods returned to Ram&Bros as goods were hazardous for consumer's health)