Sales return day book is also called as sales return book or sales return journal or sales return register. All sales return vouchers are recorded in sales return day book. Cash received in case of material returned against cash sales or otherwise, will be entered in cash book. The sales return day book contains the following columns:-

  1. Date of entry
  2. Credit note number
  3. Customer debit note number and date if any
  4. Customer’s name and address
  5. Name of item returned
  6. Quantity
  7. Rate per unit
  8. Amount
  9. Trade discount
  10.  Excise duty if applicable
  11. Sales Tax if applicable
  12. Total amount
  13. Ledger folio

The pages of sales return day book are always serially numbered. All above mentioned columns are self explanatory except ledger folio. Regarding the folio when the amount of sales return is posted to individual account of customers then the ledger folio account is filled up. The total of sales return book may be done on daily basis or weekly basis or fortnightly basis or monthly basis according to the size of transactions or requirement of the management. The totals of sales returns, excise, sales tax, trade discount are posted in respective accounts into ledger. The columns of sales return day book can be reduced or increased according to the accounting information required by the business firm.

Illustration:

Following goods were returned by the customers during the month of April’2012:-

Date Particulars Amount(In Rs.)
10.04.12 Goods returned by M/s Mascot Marketing against our Invoice No. 101 Dated 04.04.12. Their Debit Note No. 10 dated 10.04.12Local Sales 5%        RS. 1000/=Local Sales Tax 5%    Rs.  50/=Total                             Rs.1050/= 1050/=
20.04.12 Goods returned by M/s Prince Enterprises against our Invoice No. 115 Dated 15.04.12. Their Debit Note No. 09 dated 20.04.12Central Sales (against C Form) Rs. 2000/=Central Sales Tax 2%             Rs. 40/=Total                                      Rs. 2040/= 2040/=
27.04.12 Goods returned by M/s Gift House against our Invoice No. 126 Dated 20.04.12. Their Debit Note No. 5 dated 27.04.12Local Sales 5%        RS. 4000/=Local Sales Tax 5%    Rs.  200/=Total                             Rs.4200/= 4200/=

Prepare the required vouchers and enter the vouchers in Sales Return Day Book in the books of M/s XYZ Limited.

Solution:

Though, simple journal vouchers can be prepared for above transactions but to keep a systemic record, it is advisable to prepare sales return voucher and enter in separate day book i.e. Sales Return Day Book. The benefit to maintain separate sale return day book is that all the sales return can be seen at one place. It helps a lot while preparing the sales tax returns.  So, we shall prepare Sales Return Vouchers for above transactions as under:-

Sales Return Voucher

Date: 10.04.12

Local Sales 5% Taxable Account Dr.        RS. 1000/=

Local Sales Tax 5% Account    Dr.               Rs.  50/=

To M/s Mascot Marketing                              Rs. 1050/=

(Being goods retuned by M/s Mascot Marketing against our invoice number 101 dated 04.04.12 as per their debit note number 10 dated 10.04.12 enclosed)

Sales Return Voucher

Date: 20.04.12

Central Sale Against C Form Account Dr.    RS. 2000/=

C.S.T. 2% Account            Dr.                   Rs.  40/=

To M/s Prince Enterprises                           Rs. 2040/=

(Being goods retuned by M/s Prince Enterprises against our invoice number 115 dated 15.04.12 as per their debit note number 09 dated 10.04.12 enclosed)

Sales Return Voucher

Date: 27.04.12

Local Sales 5% Taxable Account Dr.        RS. 4000/=

Local Sales Tax 5% Account   Dr.                             Rs. 200/=

To M/s Mascot Marketing                              Rs. 4200/=

(Being goods retuned by M/s Gift House against our invoice number 126 dated 20.04.12 as per their debit note number 05 dated 27.04.12 enclosed)

After above vouchers are prepared, those vouchers shall be entered in sales return day book as follows:

Note:

  1. L/F means Ledger Folio. The column of Ledger Folio shall be filled when the amount will be posted in to ledger.
  2. Monthly Total of Sales Return and Sales Tax amount will also be posted in respective ledger accounts.

RELATED TERMS: