debit Accounts Payable
credit supplies return account
General Journal
Say I purchsed $500 in Office Supplies on account, I return the office supplies, since I purchased them on account, the company I purchased them from will extend me a credit to my account decreasing the balance I owe them by the said amount. My books will record....Account Payable (debit)Office Supplies (credit)I debit my Account Payable to show that I no longer owe that amount and I credit my Office Supplies to show that I no longer have that amount of supplies on hand.
debit cash / bank / accounts payablecredit purchase return
Debit account
Return inwards, also known as sales returns, are recorded in a separate journal called the "Returns Inwards Journal." This journal captures the details of goods returned by customers, including the date of return, customer name, item description, quantity, and reason for return. The total value of the returns is then transferred to the general ledger, typically reducing sales revenue in the sales account. This helps businesses keep accurate track of their sales and inventory levels.
General Journal
Say I purchsed $500 in Office Supplies on account, I return the office supplies, since I purchased them on account, the company I purchased them from will extend me a credit to my account decreasing the balance I owe them by the said amount. My books will record....Account Payable (debit)Office Supplies (credit)I debit my Account Payable to show that I no longer owe that amount and I credit my Office Supplies to show that I no longer have that amount of supplies on hand.
General Journal Sales Returns and Allowances - A company with sales returns and allowances can record them in the General Journal.
[Debit] Sales Return account [Credit] Cash account
debit cash / bank / accounts payablecredit purchase return
Debit 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
debit sales accountcredit sales return account
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.
[Debit] Bank Loan account xxxx [credit] Cash / bank xxxx
The accounting journal entries to record a security deposit should be a separate entry titled security deposit. You should include the tenants name, and it should be considered a liability since you will have to return it at some point.
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.