Ans.

Q6

The following entries will be made:

Date Double entry Rs. Rs.

April 01, 2016 Asset (right to recover product) 1,050
Cost of Sales 4,200
Inventory 5,250
Cash 7,500
Refund liability 1,500
Revenue 6,000
May 01, 2016 Refund Liability 1,500
Revenue 1,500
Cost of sales 1,050
Asset (right to recover product) 1,050