Journal Entries in the Books of Amar and Sudesh:

In the books of Amar:
1. On 1st December 2016:
Accounts Receivable (Sudesh) Dr. 10,000
Sales Cr. 10,000
(To record the sale of goods to Sudesh on credit)

2. On 2nd December 2016:
Cash Dr. 10,000
Accounts Receivable (Sudesh) Cr. 10,000
(To record the receipt of cash from Sudesh as the goods were returned)

In the books of Sudesh:
1. On 1st December 2016:
Purchases Dr. 10,000
Accounts Payable (Amar) Cr. 10,000
(To record the purchase of goods on credit from Amar)

2. On 2nd December 2016:
Accounts Payable (Amar) Dr. 10,000
Cash Cr. 10,000
(To record the payment made to Amar as the goods were returned)

Explanation:

Amar is the seller, and Sudesh is the buyer. The transaction involves the sale of goods by Amar to Sudesh, followed by the return of goods by Sudesh to Amar.

In the books of Amar:
1. Initially, on 1st December 2016, when Amar sold the goods to Sudesh, an account receivable is created to record the amount owed by Sudesh for the goods purchased. The sales account is credited to record the revenue generated from the sale.

2. Subsequently, on 2nd December 2016, when Sudesh returns the goods to Amar, Amar receives the cash. Therefore, the cash account is debited, and the accounts receivable account is credited to reflect the settlement of the outstanding amount.

In the books of Sudesh:
1. Initially, on 1st December 2016, when Sudesh purchases goods from Amar on credit, the purchases account is debited to record the increase in inventory, and the accounts payable account is credited to reflect the amount owed to Amar.

2. Subsequently, on 2nd December 2016, when Sudesh returns the goods to Amar, Sudesh makes a payment to settle the outstanding amount. The accounts payable account is debited to reduce the liability, and the cash account is credited to reflect the cash outflow.

Overall, these journal entries capture the sale of goods on credit, the subsequent return of goods, and the corresponding financial transactions between Amar and Sudesh.

Q.13 sudesh a/c dr. 10000
to sales a/c 10000

cash a/c dr 10000
to sudesh a/c 10000




Q. 14 cash a/c dr 80000
goods a/c dr 450
to capital a/c 80450