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Beyond Chalk: Education Innovation

Returns of Stock: Purchase Returns

1 Comment

On occasions customers will return goods they have purchased. Perhaps the goods were faulty or in some way unsuitable. Similarly, businesses may need to return goods to suppliers.

Questions

Why might stock be returned?

What is the source document used for returns? List the contents of this document?

PURCHASE RETURNS

On 20 June, 2010 Wantirna Electrical returned 4 faulty toasters to Burnt Bread Manufacturing. The toasters were purchased for $50 each plus GST. (Credit Note 21).

Record this transaction in the stock card of Wantirna Electrical.

Stock Card

Stock Item: Toaster                                        Location:

Stock Code:                                                     Supplier: Burnt Bread Manufacturing

Date Details

IN

OUT

BALANCE

Qty Cost Value Qty Cost Value Qty Cost Value
Jun 1 Balance 54 50 2700
         

Now record the transaction in the General Journal of Wantirna Electrical and post to the General Ledger and Creditors Subsidiary Ledger.

General Journal

Date Details General Ledger Subsidiary Ledger

Wantirna Electrical – General Ledger

Stock Control (A)

Date

Cross Reference

$

Date

Cross Reference

$

Jun 1 Balance 20,000
  

Creditors Control (L)

Date

Cross Reference

$

Date

Cross Reference

$

Jun 1 Balance 3,970

GST Clearing (A/L)

Date

Cross Reference

$

Date

Cross Reference

$

  

Wantirna Electrical – Creditors Subsidiary Ledger

Creditor – Burnt Bread Manufacturing (L)

Date

Cross Reference

$

Date

Cross Reference

$

Jun 1 Balance 580
  
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One thought on “Returns of Stock: Purchase Returns

  1. Pingback: Returns of Stock: Sales Returns | Mr Rouse's Classroom

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