Question

Returned goods by Lucky is ₹300 — Write a Journal entry.

Answer 1

Answer :

Sales return A/c . . . Dr - 300

• To Lucky - 300

( Being the goods returned by Lucky )

Explanation:

The given transaction is an example of sales return. We have earlier sold goods to Lucky which he is returning to us for any reason. Since Lucky was our debtor and so an asset. Lucky is returning goods means his liability to pay us is decreasing. We know that assets are credited on increase according to modern rule of debit and credit.

So the correct entry would be sales return debited to Lucky.