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Accounting Course Book 5

Accounting Course Book 5

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Published by HadianGates
A book I created from my notes and exercises from my AS level 1 Class in Accounting - part of a series of 6.
A book I created from my notes and exercises from my AS level 1 Class in Accounting - part of a series of 6.

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Published by: HadianGates on Dec 24, 2008
Copyright:Attribution Non-commercial

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11/14/2012

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Accounting Course – Book 5
- 1 -
The Returns Day Book
After this section you should be able to:
Make appropriate entries relating to returns outwards and inwards inthe Day Books
Make correct postings from returns day books to Purchase, Sales &General Ledgers
Explain the difference between a Credit and a Debit note
Describe how a debtor should use statements received from suppliers
Enter up the accounts for credit card transactions
Explain the need for internal checks on sales and purchases invoicesand credit notes
Describe what use may be made of factoring
The Returns Day Books
The
Returns Inwards Day Book 
 The
Returns Outwards Day Book 
 
(Or Journals)Postings will be the mirror image of ones you learnt to make for salesand purchases!
Returns Inwards and Credit Notes
Businesses allow customers to return goods and often give a refundBusinesses that deal with trade customers may operate a similar policyWhen a seller agrees to take back goods and refund a
Credit Note
isissued. It is called this because the customers account will be creditedto show the reduction in the amount owed – they are sometimesprinted in red to avoid confusion with invoices!
*
See example of aCredit note on the next page.
Returns Inwards
The
Returns Inwards Day Book 
is used for posting the items
SALES LEDGER 
:
credit
amount of credit notes to
customeraccounts
 
GENERAL LEDGER
: at
END
of period post the
TOTAL
of the
ReturnsDay Book
to the
debit
side of the
Returns Inwards account 
 
 
Accounting Course – Book 5
- 2 -
Example of a Credit Note 
2007 Per Unit TotalR. GrantHigher SidePreston8
th
September 2007Tel:Fax:
Credit Note No. 9137
To: D. Poole4 Charles StreetManchesterMc Brand PearsLess 20% trade discount25 50(10)40
 
2Quantity
 
Accounting Course – Book 5
- 3 -
Example of a Returns Inwards Day Book and how this is entered in the Sales Ledger and then the Returns Inwards Account in the General Ledger 
Sales Ledger
AAmmoouunntt((££)) 
4400 112200 229900 116600 661100 
FFOOLLIIOO 
SSLL1122 SSLL3388 SSLL9999 SSLL111122 GGLL111144 
NNootteeNNoo 
99 /  / 3377 99 /  / 3388 99 /  / 3399 99 /  / 4400 22000066 SSeepptt88DDPPoooollee 1177AABBrreewwsstteerr 1199CCVViicckkeerrss 3300DDSStteevveennss&&CCoo TTrraannssffeerrrreeddttooRReettuurrnnssIInnwwaarrddssAAccccoouunntt 
Returns Inwards day Book Page 10
Pg 12
 
DateDetailsFolio
Amount (£)
DateDetailsFolio
Amount (£)
2006Sept 8Returns InwardsRI1040
Pg 58
DateDetailsFolio
Amount (£)
DateDetailsFolio
Amount (£)
2006Sept 17Returns InwardsRI10120
D. PooleA. Brewster

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