In business transaction, there rare cases of sales returns. This happens when sales are made to a customer and the customer finds any defaults on that particular product he purchased, he has a right to return it back to the seller And when this occurs, the seller will then open up a return inwards book …
The returns outward book is a book that records all purchases returns. This is where a particular product is bought but later it was found out that the goods are not in order and so the purchaser decides to return the product back to the seller. Here, the records will be made in the purchases …
This is the book that records all credit purchases. It contains the following particulars such as the name of the person from whom the purchases was made, the type and quantity of goods purchased, the trade discount if any, the net amount of the credit purchases. Note that this book has the same format with …
This is a book where we record all credit sales. Here, It contains the following information: (i) the names of the person who received the goods (ii) The type and quantity of goods sold on credit (iii) The cost of goods sold on credit (iv) The trade discount (if any) (v) The net amount of …
The subsidiary book is made up of (i) Sales daybook (ii) Purchases daybook (ii) Returns outward book (iv) Returns inward book. (v) Special Journal The subsidiary book is a book from which sales are recorded before they are being posted to the ledger Note that purchases day books are recorded in the purchases journal Sales …
The main difference between the two aspects Receipt & Payments Income & Expenditure (i) It includes capital receipt and capital payments. (i) it excludes capital receipts and capital payments (ii) It deals mainly on cash transactions of business. (ii) it includes accounts and prepayments (iii) Balance represents cash in hand, bank balance or of bank …