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Sales return entry

Bhavesh (Accounts) (899 Points)

06 November 2011

Pls. can anybody tell me How to pass a Sales Return entry in following case

"Mr. A " return Goods Worth Rs.10000/- (for Eg.: Table) and Buy the Goods Worth Rs.7000/- (for Eg.: Chair) and there is a VAT on Sales also. so how to post the above entry pls. let me know.

Regards

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13 Replies

Anupam Bajaj (Student) (111 Points)
Replied 07 November 2011

when stock is not maintained than Sales return Dr 3000 Vat 14% Dr 420 To vendor 3420 when stock is maintain than sales return Dr 10000 vat 14% Dr 420 To sales 7000 To vendor 3420

Rajkumar (Accountant) (68 Points)
Replied 07 November 2011

Make a sales return entry for Rs.10,000/- and a new sale entry for Rs.7,000/-

Devendra (Chartered Accountant) (4775 Points)
Replied 07 November 2011

Following entries to be passed:-

1) In case Goods returned

Sales A/c Dr. 8889

VAT A/c Dr. 1111

To Mr. A A/c 10000

[Being goodsa retuned by Mr. A]

2) In case of goods sold to Mr. A

Mr. A A/c Dr. 10000

To Sales A/c 8889

To Output VAT A/c 1111

[Being Goods sold to Mr. A]

Regards,

Devendra K

1 Like

(Guest)

Agreed with Raj kumar. It's most clear. Does not need any explanation at a later date to any body even in your absence.

CMA Sonu... (Asst. Manager - Finance) (158 Points)
Replied 07 November 2011

Originally posted by : Bhavesh C. Vyas
	Pls. can anybody tell me How to pass a Sales Return entry in following case "Mr. A " return Goods Worth 10000/- (for Eg.: Table) and Buy the Goods Worth 7000/- (for Eg.: Chair) and there is a VAT on Sales also. so how to post the above entry pls. let me know. Regards

As we are the Vendor

1st entry : Good return by Mr.A

Return Inward Dr.

VAT @ 12.5% Dr.

To Mr. A

2nd entry: Purchase made by Mr. A

Mr. A Dr.

To Sales

To VAT @ 12.5%

*note, VAT is an Indirect Tax, it would be additional to the amount of sale/Purchase.

Thanks..

CMA Sonu... (Asst. Manager - Finance) (158 Points)
Replied 07 November 2011

Originally posted by : Devendra
	Following entries to be passed:- 1) In case Goods returned Sales A/c Dr. 8889 VAT A/c Dr. 1111 To Mr. A A/c 10000 [Being goodsa retuned by Mr. A] 2) In case of goods sold to Mr. A Mr. A A/c Dr. 10000 To Sales A/c 8889 To Output VAT A/c 1111 [Being Goods sold to Mr. A] Regards, Devendra K

VAT is an Indirect Tax, it would be additional to the amount of sale/Purchase.

Ravi Arora (Accounts Executive) (33 Points)
Replied 08 November 2011

Agreed With Rajkumar, keep it simple...........

Narender Yadav (Accounts Manager) (65 Points)
Replied 08 November 2011

i agree with Mr Raj Kumar. Its Simple,

Narender Yadav (Accounts Manager) (65 Points)
Replied 08 November 2011

Will anybody plz tell me about the rate of PF & Esic on Salary Deduction.

& what is the use of St - 38 & Vat C -4 .

Thanks

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 11 November 2011

Hi,

PF needs to be deducted @ 12% of the Basic salary+DA from the employees salary & Employer also contributes the same percentage. However out of the employers contribution 3.67& goes to PF & the balance goes to pension fund

With effect from May2010, the limit for ESI is being increased to Rs.15k. If the gross salary exceeds this limit then no ESI needs to be deducted. The ESI is calculated @ 1.75 of the gross salary & the employer also contributes 4.75 of the gross salary of the employee.

Naveen Ravella (Program Management) (33 Points)
Replied 14 November 2011

Originally posted by : Bhavesh C. Vyas

Pls. can anybody tell me How to pass a Sales Return entry in following case

"Mr. A " return Goods Worth 10000/- (for Eg.: Table) and Buy the Goods Worth 7000/- (for Eg.: Chair) and there is a VAT on Sales also. so how to post the above entry pls. let me know.

Regards

Every on saying about the sales entry wat abt the purchase entry.

We need to pass purchase entry also

Purchase A/C DR 7,000/-

To Cash A/C 7,000/-

Nilesh (Account Executive) (83 Points)
Replied 14 November 2011

I agree with above entry

Thanks

Hemanth Sai (CA-FINAL,AUDIT TRAINEE) (110 Points)
Replied 14 November 2011

If the price is inclusive of Vat then:

1) In case of Goods returned

Sales A/c Dr. 8772

14%VAT A/c Dr. 1228

To Mr. A A/c 10000

[Being goodsa retuned by Mr. A]

2) In case of goods sold to Mr. A

Mr. A A/c Dr.    7000

To Sales A/c    6140

To Output 14%VAT A/c    860