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More from VCE Accounting - Michael Allison
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15.5 Summary of Purchase and Sales Returns
- 2. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
15.5 SUMMARY OF PURCHASE
AND SALES RETURNS
Supplier Business Customer
Purchase Return
Business returns
stock to the supplier
Sales Return
Customer returns
stock to the business
Credit Note Credit Note
Value at amount on
Credit Note
Value at last stock
purchased (LIFO)
- 3. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Purchase Return
Creditors Control [L]
Stock/GST 110
15.5 SUMMARY OF PURCHASE
AND SALES RETURNS
Creditor – Subsidiary [L]
Stock/GST 110
Stock Control [A]
Creditors Control 100
GST Clearing [L]
Creditors Control 10
Sales Returns [-R]
Debtors Control 250
GST Clearing [L]
Debtors Control 25
Debtors Control [A]
Sales Returns/GST 275
Debtor – Subsidiary [A]
Sales Returns/GST 275
Stock Control [A]
Cost of Sales 100
Cost of Sales [E]
Stock Control 100
Sales Return
Creditors Control [L]
Stock/GST 110
Creditor – Subsidiary [L]
Stock/GST 110
Stock Control [A]
Creditors Control 100
GST Clearing [L]
Creditors Control 10
Sales Returns [-R]
Debtors Control 250
GST Clearing [L]
Debtors Control 25
Debtors Control [A]
Sales Returns/GST 275
Debtor – Subsidiary [A]
Sales Returns/GST 275
Stock Control [A]
Cost of Sales 100
Cost of Sales [E]
Stock Control 100
- 4. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
15.5 SUMMARY OF PURCHASE
AND SALES RETURNS
Valued using First in First Out (FIFO)
Valued at the lowest cost of stock on hand (conservatism)
Valued using First in First Out (FIFO)
Valued using First in First Out (FIFO)
Valued using First in First Out (FIFO)
Stock Loss
Stock Gain
Donation
Drawings
Sales
Valued at the amount shown on the supplier’s Credit Note
Valued using Last in First Out (LIFO) reverse order
Purchase Return
Sales Return
- 5. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
• Transactions effecting Stock Control…
15.5 SUMMARY OF PURCHASE
AND SALES RETURNS
Stock Control [A]
Stock is purchased from
suppliers
There is a stock gain
The owner contributes
stock personally
Stock is sold to
customers
There is a stock loss
The owner withdraws
stock for personal use
Stock is donated for
advertising purposes
Sales return from a
customer
Purchase return to a
supplier
- 6. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
TASK
In-class Homework
Ex15.10 X
Ex15.11 X
Ex15.12 X
Ex15.13 X
Ex15.14 X
Ex15.15 X
Ex15.16 X