Sales/Purchase Returns from the stock card point of view

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This presentation has been put together for VCE Accounting students studying purchase and sales returns. It shows they are accounted for in the stock cards.

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Sales/Purchase Returns from the stock card point of view

  1. 1. Purchase/Sales Returns<br />From the Stock Card Point of View<br />
  2. 2. Impact on ledger accounts<br />Purchase Returns<br />↓ Creditors Control (liability)<br />↓ Stock Control (asset)<br />↑ gst clearing (liability)<br />
  3. 3. Sales Returns<br />↓ Sales (revenue) dr sales return<br />↓ Debtors Control (current asset) cr<br />↓ GST Liability (current liability) dr<br />↑ Stock Control (current asset) dr<br />↓ Cost of Sales (decrease expense) cr<br />
  4. 4. The Stock Card<br />Impact of Purchase Return <br />Electro TVs had a balance of 5 digital TV sets on July 1st<br />July 2nd Purchased 10 TV sets at $900 each plus $90 gst Inv 54<br />July 3rd Sold 4 TV sets for $2000 plus gst $200 each Rec 145<br />July 4th Returned 2 TV faulty TV sets Credit note 5<br />
  5. 5. Electro TVs had a balance of 5 digital TV sets on July 1st cost price $800 plus $80 gst each<br />July 2nd Purchased 10 TV sets at $900 each plus $90 gst Inv 54<br />July 3rd Sold 4 TV sets for $2000 plus gst $200 each Rec 145<br />July 4th Returned 2 TV faulty TV sets Credit note 5<br />
  6. 6. What it looks like?<br />7200<br />
  7. 7. What about the sales return?<br />Digital TVs <br />had opening balance of 1 digital TV at cost price $800 plus $80 gst, 8 TVs at $900 plus gst $90 on Aug 1<br />Sales of 4 TV sets for $2000 each plus gst $200 on Aug 2 Rec 46<br />2 TV sets were returned as they were faulty Credit note 64<br />
  8. 8. Opening balance of 1 digital TV at cost price $800 plus $80 gst, 8 TVs at $900 plus gst $90 on Aug 1Sales of 4 TV sets for $2000 each plus gst $200 on Aug 2 Rec 462 TV sets were returned as they were faulty Credit note 64<br />
  9. 9.
  10. 10. This Week......<br />You are expected to <br />Finish the summary questions p 311<br />Copy the ledger account p 306 in a Word document<br />Complete practical exercises 15.1, 15.2, 15.4, 15.5, 15.7, 15.9, 15.11, 15.12, 15.13, 15.15, 15.16<br />Read chapter 16<br />Complete summary questions p 327<br />Commence practical exs16.1, 16.2<br />

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