Goods Returned by Mr. Gupta and Entry in the Sales Day Book

When a customer returns goods to the seller, it is recorded in the sales day book and posted to the credit of the customer's account. Let's understand the process in detail:

1. Definition of Sales Day Book:
The sales day book is a subsidiary book used to record all credit sales made by a business. It provides a chronological record of sales transactions and helps in maintaining accurate accounting records.

2. Importance of Goods Returned:
Goods returned by customers are an integral part of the sales process. It could be due to various reasons such as dissatisfaction with the product, damaged goods, incorrect product delivered, or any other valid reason. Proper recording of returned goods ensures accurate accounting and helps in maintaining customer satisfaction.

3. Recording Goods Returned:
When Mr. Gupta returned goods of the value of Rs. 2000, the salesperson or the accounting department should make a note of it. The following steps are involved in recording the goods returned:

- Identify the customer: The salesperson should identify the customer returning the goods, in this case, Mr. Gupta.
- Determine the value of goods returned: The salesperson should determine the value of the goods returned by Mr. Gupta, which is Rs. 2000 in this case.
- Record in the sales day book: The salesperson or the accounting department should record the goods returned in the sales day book. It should include the date of the return, customer name (Mr. Gupta), the value of goods returned (Rs. 2000), and any other relevant information.
- Posting to the customer's account: After recording in the sales day book, the entry should be posted to the credit side of Mr. Gupta's account in the accounts receivable ledger. This helps in maintaining an accurate balance of the customer's account.

4. Impact on Accounting:
Recording the goods returned in the sales day book and posting it to the customer's account has the following impact on accounting:

- Sales revenue adjustment: The value of goods returned (Rs. 2000) will be deducted from the total sales revenue, as the goods are no longer considered as sold.
- Accounts receivable adjustment: The customer's account balance will be reduced by Rs. 2000, reflecting the goods returned by Mr. Gupta.
- Inventory adjustment: The returned goods will be added back to the inventory, as they are no longer considered as sold.

Conclusion:
Recording goods returned in the sales day book and posting it to the customer's account is crucial for accurate accounting and maintaining customer satisfaction. It helps in adjusting sales revenue, accounts receivable, and inventory. Following the proper process ensures transparency and reliability in financial records.