Sales returns – lesson 4

It's only fair to share...Share on Google+Pin on PinterestShare on LinkedInShare on Facebook




Accounting for sales returns is a key part of the Processing Bookkeeping Transactions course and Accounting Trainees must know the double entry involved.

You are part way through the FREE Processing Bookkeeping Transactions course and you should have read the pages listed below before reading this page:

PROCESSING BOOKKEEPING TRANSACTIONS COURSE: lesson 1

Welcome to accounting for sales and sales returns.

We are now going to look at accounting for sales and sales returns.
The most important part of this chapter is that you know how to make correct entries in the following books and accounts:
Sales Day Book
Sales Returns Day Book
Sales Account
VAT Account
Analysed Sales Day Books

It is essential that you know how accounting for sales and sales returns fits into the overall accounting system, and you should commit to memory the flow charts on pages 60 and 61 of the textbook.

Accounting for sales and sales returnsMore terminology is introduced in this chapter on accounting for sales and sales returns, such as capital income and revenue income. Classification of income is very popular with Accounting  examiners, so expect a question on it in the exam.

We are also introduced to double entry bookkeeping and the use of debits and credits in this chapter. Have a go at the quiz below and test your knowledge of accounting for sales and sales returns.


Here is the Amazon link for the books:

QUIZ: Accounting for Sales and Sales Returns





Before attempting this quiz you should have read chapter 3 entitled Accounting for Sales and Sales Returns of your recommended textbook “Bookkeeping 1″.
 
Please attempt all questions and then press the submit button at the end, you will then be taken to your results page.
 
Question 1 of the quiz relates to the remittance advice note and T account below.
 
Good luck!
 
remittance advice note and ace ltd account



Name


1
Above are a Remittance Advice Note and a sales account of the customer in the accounting records of the seller – Smart Ltd.
Identify any discrepancy that you may find with the Remittance Advice Note:


2
Complete the missing word.

A ....................... entry records a gain in value, an asset, or an expense.


3
The book of prime entry prepared from sales invoices is called the :


4
Income from items other than the goods in which the business trades is called (such as a plumbing business selling a van):


5
Complete the missing word.
A ................ entry records the giving of value, a liability, or an income item.


6
Complete the missing word.
The first accounting books in which transactions are recorded are called books of ................ entry.


7
Complete the missing word.

A collection of accounts within the accounting system is called a ..............



8
Complete the missing word.

The ............. ledger is a subsidiary ledger section which contains the memorandum accounts of the firms receivables.



9
Complete the missing word.

The ............... ledger which contains , the sales account, sales returns account, sales ledger control account and VAT account.


10

The book of prime entry prepared from credit notes issued to customers is called:


11

Income from the goods in which a business trades is called :



12

A subsidiary ledger account which provides a record of individual amounts is called a


13

Cross referencing methods used to trace transactions through the accounting system is called:


14
Complete the missing word.

.............. sales books are used when a business wishes to distinguish between different departments or different categories of goods sold










Leaderboard for Accounting for Sales and Sales Returns

1. -42 Points
2. -42 Points
3. -42 Points
4. -42 Points
5. MIH01-42 Points

For a list of all the FREE courses on this site please click this link.

Leave a Reply