RETURNS OUTWARDS JOURNALS

The purchases returns journal is meant for recordings returns of goods purchased on credit. Goods returns may be returned of goods purchase on credit. Goods returns may be returned due to the following reasons:

(a)    If the goods is below the standard ordered for

(b)    Damaged during transit or during packaging

(c)    Brads of the goods supplied is different from the one ordered for. Goods bought for cash are not recorded in this book. They are recorded in memoandum book only. On receipts of cash in respect of the goods returned, the entry is passed through the cash book. Where they returned goods are exchanged for other goods of the same value, no entry is requested.

When goods are returned to the supplier a debit note is sent to him indicating that his account has been debited with the amount mentioned in the debit note.

ILLUSTRATION

The following information were extracted from the Debit Notes of Chief Nwali & Sons. Enter them in the returning outwards Journal, transfer to the ledger and entract if a trial balance.

March: 11 returned to E. IMO enterprises ltd

10 cartons of Bar soap @ 280 each

14 cartons of baby lotion @ 860

5 tins of powered milk @ 580 each

he took account of a 51/2% trade discount earlier granted

march 29: returned to ugo Ralph:

12 cartons of baby powder @ 1160

9 dozen baby dreses @ 5000 per dozen

solution

CHIEF NWALI & SONS

RETURNS OUTWARDS JOURNAL

date	Invoice no	particular	folio	details	amount
March 11	308	E.IMO enterprises ltd	8
		10 cartons of Bar soap @ 280 each			2,800
		14 cartons of baby lotion @ 860 each			12,040
		5 tins of powdered milk @ 580 each			2,900
					17,740
		Less: 51/2% trade discount			975.70 16,764.30
29		UGO RALPH		49
		12 cartons of baby powder @  116 each			13,920
9 dozen baby dresses	5000 each			45,000	58,920 75,68430

Note: folio nos and invoice no 5 were assumed.

 

Dr .  E. Imo enterprises ltd   Cr

March  11

Return outward  16,764.30

Dr Ugo Ralph                                                                   cr

March  29

N Return outward 58,920

Dr returns outwards  account                                           cr

March  31 sundries                N                                             75684.30

Trial balance 

Particulars	Folio	Debit      N	Credit
e. Imo enterprises	8	16,764.30
Ugo Ralph	49	58,920
Returns outwards account	50		75,684.30
		75,684.30	75,684.30

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