The return inward journal is primarily used to record items that a business returns to its suppliers or vendors, such as defective goods or excess inventory. This journal helps track these transactions for accurate inventory management and accounting. By documenting returns, businesses can adjust their Accounts Payable and maintain accurate financial records, ensuring that they reflect the true state of their assets and liabilities.
yes return inward is a liability..therefore must be credited
sales ledger
Yes
ya
General Journal
yes return inward is a liability..therefore must be credited
sales ledger
Yes
ya
General Journal
Credit note issued
Inward return is directly proportional to the outward clearing where funds crediting into customers account i.e;inflow of funds into customers account and cheque return due to reason for eg insufficient funds or say cheque stopped by the drawer etc.... Outward return is directly proportional to the inward clearing where funds are debiting from the drawee or payee account i.e;outflow of funds from customers account and cheque return due to reason insufficient funds or say cheque stopped etc....
[Debit] sales return [credit] cash / bank
return;orreturn ;PS: not function, statement!
[Debit] Sales Return account [Credit] Cash account
[Debit] Sales Return [Credit] Accounts receivable / Cash
The return inwards journal serves to record goods that customers return to a business, documenting the return of inventory and the reduction of sales revenue. It helps in tracking returns for accounting purposes, ensuring accurate inventory levels, and managing customer accounts. By maintaining this journal, businesses can analyze return patterns and improve customer satisfaction through better handling of returns.