Raw Material (Item Name) A/c Dr xxx To Cash / Bank / Supplier xxx (Raw Material Purchase with invoice no., date, qty., etc.,)
Cash / Bank / Buyers Dr xxx To Finished Goods Sales A/c (Item Name) xxx (Sales of goods vide inv no., date, qty., etc.,)
Finished Goods Sales A/c (Item Name) Dr xxx To Cash / Bank / Buyers xxx (Sales Return goods details with Cheque/cash details)
2) If Sales Tax applicable:
Raw Material (Item Name) A/c Dr xxx Sales Tax (Input Tax) A/c Dr xxx To Cash / Bank / Supplier xxx (Raw Material Purchase with invoice no., date, qty., etc.,)
Cash / Bank / Buyers Dr xxx To Sales Tax (Output Tax) xxx To Finished Goods Sales A/c (Item Name) xxx (Sales of goods vide inv no., date, qty., etc.,)
Finished Goods Sales A/c (Item Name) Dr xxx Sales Tax (Output Tax) A/c Dr xxx To Cash / Bank / Buyers xxx (Sales Return goods details with Cheque/cash details)
if can show sales return separately in Trading account by creating separate ledger.
for invetory effect, you need to select each & every time for making purchase & sales entry and sales return also. finally, inventory only effects quantity only. so, it will able to show present stock position.
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