Return Inwards And Outwards Ledgers

Question 1

Define return inwards

Answer 1

Goods return to company by customers

Question 2

What steps are involved in the return inwards Day book

Answer 2

• issue credit note to customer
• record credit note in return inwards day book
• post credit note to the sales ledger
• record credit note in debit side of general ledger

Question 3

Define return outwards

Answer 3

• when the company returns goods to the suppliers and are issued a debit note

Question 4

What steps are involved in the return outwards day books

Answer 4

• issue debit note to customer
• record debit note in return outwards day book
• post debit note in purchase ledger
  Record in debit note in credit side of general ledger