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Goods returned by customer for Rs 1200 but entered in purchase return book . Give Rectification entries?
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Rectification Entries for Goods Returned by Customer but Entered in Purchase Return Book

To rectify the error of entering goods returned by a customer in the purchase return book instead of the sales return book, the following entries need to be made:

1. Reverse the Wrong Entry:

The first step is to reverse the wrong entry made in the purchase return book. Since the goods were returned by the customer, it should have been recorded in the sales return book. Therefore, the entry in the purchase return book needs to be reversed.

Purchase Return A/c Dr. 1200
To Customer A/c 1200

2. Record the Correct Entry:

The next step is to record the correct entry in the sales return book. The entry should be made as follows:

Customer A/c Dr. 1200
To Sales Return A/c 1200

This entry will reduce the amount of sales made to the customer by Rs. 1200 and will also increase the sales return account by the same amount.

3. Adjust the Inventory:

Since the goods were returned by the customer, the inventory should be adjusted accordingly. The inventory should be reduced by the cost of goods returned. The entry should be made as follows:

Inventory A/c Dr. 1200
To Cost of Goods Sold A/c 1200

This entry will reduce the inventory by the cost of goods returned and will also increase the cost of goods sold account by the same amount.

In conclusion, by following the above rectification entries, the error of recording goods returned by a customer in the purchase return book can be corrected. It is important to ensure that the correct books are used for recording transactions to avoid errors and discrepancies in the financial statements.
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Goods returned by customer for Rs 1200 but entered in purchase return book . Give Rectification entries?
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Goods returned by customer for Rs 1200 but entered in purchase return book . Give Rectification entries? 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 Goods returned by customer for Rs 1200 but entered in purchase return book . Give Rectification entries? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods returned by customer for Rs 1200 but entered in purchase return book . Give Rectification entries?.
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