Returns day books

Question

What is a credit note?

Answer 1

It is a note sent to the customer, showing the amount of the allowance given by the seller. It is sent when the seller agrees to take back goods and refund the amount paid, or agrees to refund part or all of the amount the buyer paid.

(Gestuurd door bedrijf naar klant. [credit op receivables])

Answer 2

1. Sales ledger: credit the amount of credit notes, one by one, to the accounts of the customers in the ledger.

2. General ledger: at the end of the period the total of the returns inwards day book is posted to the debit of the returns inwards account.

They are posted in the returns inwards day book.

Answer 3

It is sent by the customer to the supplier giving details of the goods and the reason for their return. This is done when the supplier agrees, goods bought previously may be returned.

(Ontvangen door bedrijf van leverancier. [debit op payables])

Answer 4

It is a copy of the debtor's account in the seller's books, which shows:

1. the amount owing at the start of the month

2. the amount of each sales invoice sent to the debtor during the month

3. credit notes sent to the debtor in the month

4. cash and cheques received from the debtor during the month

5. the amount due from the debtor at the end of the month

Answer 5

Sale of items via credit cards:

Dr: Credit card company

Cr: Sales

Receipt of money from credit card company:

Dr: Bank

Cr: Credit card company

Commission charged by credit card company:

Dr: Selling expenses

Cr: Credit card company

Answer 6

A commission is not a deduction from the selling price. It is treated in the same way as a cash discount. That is, is it a selling expense and is entered in the profit and loss section of the income statement.