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i think it should be treated as an ""Expense""
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
yes, SALES-SALES RETURNS- COST OF GOODS SOLD
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
i think it should be treated as an ""Expense""
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
$ $ $ sales return inwards lcogs opening stock purchase return outwards etc
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
yes, SALES-SALES RETURNS- COST OF GOODS SOLD
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
First Answer : Debit an account called investments and credit an account called Cash (or a payable) Second Answer : The first answer is referring to buying of Stocks (as in Shares like those listed on a Stock Exchange). If you are thinking of stock such as raw materials of a business or stock for resale (- e.g. an electrical appliance store purchases TVs for resale therefore the TV is their stock) than there is actually NO DOUBLE ENTRY because there is NO SUCH THING as a STOCK ACCOUNT. Stock is recorded using a physical record in and out. This gives rise to different stock valuation methods (FIFO, LIFO, AVERAGE). Why is there no STOCK ACCOUNT in double-entry? Because you buy something for say £10, you will want to sell it for a higher price, say £15 to make a profit. If you have a Stock Account, it will not balance. So how is "stock" recorded in your standard double-entry system? "Stock" is actually recorded using 4 accounts:- Increase in Stock Purchases A/C Return Inwards A/C Decrease in Stock Sales A/C Return Outwards A/C The balancing is done at the year end through your Profit and Loss A/C. The difference is your "Profit or Loss".
A Return
Purchase return - this is the outward return by the firm While double entry is when you have entered the transaction twice
average return on a checking account is about 0.1
No