Replacement of goods

We can treat is as Sales Return so that Inventory also effected accordingly.

dear sir

if we get a sale return of an item due to some defect and which we know will not sell now, then how will we make its treatment in books.

what will be the entry and treatement in tally.

Dear Madam

Sales Return A/c Dr

To: S. Debtors

   Net Result: Sales+ Tax due will reduce to that extent  & Out Standing i.e receivable from the Client will reduce to that extent .

Hope the abvoe clarifies.