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sir my question is that if we buy goods on credit and then return them what journal entry we will make in our general ledger for
1:trade payables
2:return outwards
3:bank
4:trade receivablesWhy have you headed up this thread as discounts? Your question has nothing to do with discounts 🙂
The double entry when goods are returned is:
Dr Payables Cr Returns outwards.
Do watch my free lectures. They are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
sorry sir but you have not explained why there is no entry made for bank and trade receivables…..??????
please explain this point……There is only an entry in bank if there is cash received or paid – simply returning goods does not involve paying or receiving cash.
Receivables have nothing at all to do with buying goods on credit and then returning them.
Again, have you watched all of the free lectures?
thanks sir
I have seen some lectures but not all of them..
please suggest the lecture topic for this question..so that i will be able to clarify my confusion.The lectures are to be watched in order.
It is just the same as what happens if you were to attend a course with a tuition provider – you can’t just watch one lecture in isolation because they depend on you having understood the earlier lectures.
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