Welcome to your CA Foundation Accounts When a large number of articles are sent frequently on a sale or return basis, it is necessary to maintain Sale journal Goods returned journal Sale or return journal Sale or Return Day Book and Sale or Return Ledger are known asAdd description here! principal books subsidiary books memorandum books A sent some goods costing ` 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing ` 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The Inventories on approval will be shown in the balance sheet at ` 2,000. 2,700 2,700 less 25% of 2,700. A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2016, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of Inventories on approval will be amounting ` 16,000. ` 20,000. ` 15,000. A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the nancial year, two cars which had cost ` 55,000 each have been sent on ‘sale or return’ and have been debited to customers at ` 75,000 each, cost of goods lying with the customers will be Bwbdu2d didhpihd Dwdiwd Wdh1 R1 wd 12r1 R1r R1 R1 R1r R1 1,10,000. 55,000. 75,000. Time is Up! Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.