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(iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.?
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(iv) On 15th March, goods of the sale value of ` 10,000 were sent on s...
Sale or Return Basis Transaction
In a sale or return basis transaction, goods are sent to the customer for approval before the sale is considered final. The customer has a certain period of time to review and decide whether to keep the goods or return them.
Details of the Transaction
In this case, goods worth ` 10,000 were sent to a customer on 15th March on a sale or return basis for a period of four weeks. This means that the customer had until 12th April to approve or return the goods.
On 10th April, the customer returned 40% of the goods, which means that ` 4,000 worth of goods were returned. The customer approved the rest of the goods, which means that ` 6,000 worth of goods were considered sold.
Billing
Since the customer approved ` 6,000 worth of goods, they were billed for this amount on 16th April. The customer was not billed for the ` 4,000 worth of goods that were returned.
Conclusion
Sale or return basis transactions are common in business, especially when dealing with new customers or high-value goods. It is important to keep accurate records of such transactions and ensure that billing is done only for the approved goods.
In a sale or return basis transaction, goods are sent to the customer for approval before the sale is considered final. The customer has a certain period of time to review and decide whether to keep the goods or return them.
Details of the Transaction
In this case, goods worth ` 10,000 were sent to a customer on 15th March on a sale or return basis for a period of four weeks. This means that the customer had until 12th April to approve or return the goods.
On 10th April, the customer returned 40% of the goods, which means that ` 4,000 worth of goods were returned. The customer approved the rest of the goods, which means that ` 6,000 worth of goods were considered sold.
Billing
Since the customer approved ` 6,000 worth of goods, they were billed for this amount on 16th April. The customer was not billed for the ` 4,000 worth of goods that were returned.
Conclusion
Sale or return basis transactions are common in business, especially when dealing with new customers or high-value goods. It is important to keep accurate records of such transactions and ensure that billing is done only for the approved goods.
Community Answer
(iv) On 15th March, goods of the sale value of ` 10,000 were sent on s...
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(iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.?
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(iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about (iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.?.
(iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about (iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a customer, the period of approval being four weeks. He returned 40% of the goods on 10th April, approving the rest; the customer was billed on 16th April.?.
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