Pass journal entries for the following transactions in the books of Bholanath Internationals, a dealer of Computer:
Date: 18.4.2025
Transactions: Purchased goods from Raj ₹ 50,000 and sold to Mayank for ₹ 65,000; Mayank returned goods of ₹ 13,000 which were returned to Raj.
Pass entries for returns only.
Answer (2)
To record the journal entries specifically for the returns of goods in the books of Bholanath Internationals, let's consider the relevant transactions involving the returns only.
The key transactions are:
Return of goods from Mayank to Bholanath Internationals:
When goods worth ₹13,000 are returned by Mayank, this involves a sales return.
Journal Entry:
Debit: Sales Return Account ₹13,000
Credit: Mayank's Account ₹13,000
This entry reduces sales revenue and reflects the return of goods by Mayank.
Return of goods from Bholanath Internationals to Raj:
When the goods returned by Mayank are further returned to Raj, it involves a purchase return.
Journal Entry:
Debit: Raj's Account ₹13,000
Credit: Purchase Return Account ₹13,000
This entry reduces the purchase amount and records the return of goods to Raj. ;
The journal entries for the returns should record a sales return from Mayank to Bholanath Internationals and a purchase return back to Raj. Specifically, we would debit the Sales Return Account and credit Mayank's Account for ₹13,000, followed by debiting Raj's Account and crediting the Purchase Return Account also for ₹13,000. These entries accurately adjust the accounts pertaining to returned goods.
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