The returns inward journal is a book used for
recording of returns of goods sold on
credit. When goods are returned to the seller,
usually send a credit note to the buyer, acknowledging the receipts of
the goods and also informing him (The buyer that his account has been credited up to the
amount of goods returned by him.
Illustration:
Record the following transactions in the returns inward
journal of young Emma, post to the
ledger
and extract a trial balance
August 1 : egbe returns:
5
electric heaters @ N2500
2
table lamps @ N1,650 each
the 2 ½ % earlier granted him was taken account of
august 16: Chief
Umoke returned:
2 sets of Gas
Cookers @N6,850
3 sets of water
filter @ N5,700
He was earlier
granted 2% trade discount
Solution:
Young
Emma
Returns inward journal
date
|
Invoice No
|
Particulars
|
folio
|
Details
|
Amount
|
Aug 1
|
301
|
Mr egbe
|
10
|
||
5 electric heaters @ N2,500 each
|
12,500
|
||||
2 TABLE LAMPS @ N1,650 each
|
3,300
|
||||
15,800
|
|||||
Less: 2% of trade
discount
|
395
|
15,405
|
|||
Aug 16
|
302
|
CHIEF UMOKE:
|
11
|
||
2 sets of Gas cookers
@ N6,850 each
|
13,700
|
||||
3 sets of water
filter @ N5700 each
|
17,100
|
||||
30,800
|
|||||
Less: 2% discount
|
616
|
30,184
|
|||
Total to returns inward alc/dr
|
45,589
|
Ledger
Dr. Mr
egbes account cr
N
Aug 1 returns
inwards 15,405
|
Dr.
chief umoke’s account cr
N
Aug 16 returns
inwards 30,184
|
Returns inwards account
N
Aug 31 sundries
45,589
|
Trial balance
Particulars
|
folio
|
Debit
N
|
Credit
N
|
Mr. Egbe AC
|
|||
Mr. Egbe Account
|
2
|
15,405
|
|
Umoke
|
5
|
30,284
|
|
Returns inwards account
|
6
|
45,589
|
|
45,589
|
45,589
|