Mobile replacement

i am having doubt in accounting of a firm who is engaged in mobile phone distribution of a company....actually firm makes sales to retailer and reatailer to final customer....and incase of any defect in handset customer returns the handset if in warrenty for replacement to retailer and retailer returns to distributor....and distributor sends the defective handset to company and gets new handset in its place and forward to ratailer for customer....

my question is that what will the proper way to show this for distributor in its books....how can we record this in tally or in manual entry....??

 

Replies (3)
Entry should be given below in the books of Distributor 1.at the time of sale Retailer A/c- Dr To sales A/c 2. at the time of return from retailers Sale return A/c Dr To Retailer A/c 3 a the time of return to Manufacture Manufacture A/c - Dr. To Purchase Return 4 at the time of replacement Purchase account Dr to Manufacture A/c 5 at the time of replacement to retailers Retailers A/c Dr to sales A/c please maintain same unique no in all the entry with inventory in tally when ever you show the report related to particular item it shows the complete relation press ALT+F1 on particular inventory report.

thank you sir....

but sir at what amount we make entry of that....can we consider the actual price or something else....??

at the time of sale/sale return is sale price and at the time of purchase/purchase return is purchase price only.

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