Question

Return defective goods by 1000 general entry

Answer 1

Answer:

If goods are returned to a supplier, or if an invoice received from him has an over-charge, a credit note would be sought and received from such a supplier to rectify the situation. All credit notes received from the supplier are entered in the return outwards book, in more or less the same manner as invoices received are entered in the purchases book. As the various credit notes may bear different serial numbers, these are re-numbered at the time of making entries in the return outwards book for convenience in filing and reference.