Replacement of goods

Hi friends

 

If X LTd. sells a TV to Mr. Y for rs. 50000.

 

it is found to be defective and X Ltd. replaces it to Y with a new TV

 

what will b the entries in books of X LTd. and Y

Replies (4)

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.

 

 

If there is any provision maintained for guaranteed amount first adjust with that amount estimated loss incurred for recovered product...

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.

 

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