15.5 Summary of Purchase and Sales Returns

1. 15.5 Summary of PURCHASE AND SALES returns

2. 15.5 Summary of PURCHASE AND SALES returns Supplier Business Customer Purchase Return Business returns stock to the supplier Sales Return Customer returns stock to the business Credit Note Credit Note Value at amount on Credit Note Value at last stock purchased (LIFO)

3. Purchase Return Creditors Control [L] Stock/GST 110 15.5 Summary of PURCHASE AND SALES returns Creditor – Subsidiary [L] Stock/GST 110 Stock Control [A] Creditors Control 100 GST Clearing [L] Creditors Control 10 Sales Returns [-R] Debtors Control 250 GST Clearing [L] Debtors Control 25 Debtors Control [A] Sales Returns/GST 275 Debtor – Subsidiary [A] Sales Returns/GST 275 Stock Control [A] Cost of Sales 100 Cost of Sales [E] Stock Control 100 Sales Return Creditors Control [L] Stock/GST 110 Creditor – Subsidiary [L] Stock/GST 110 Stock Control [A] Creditors Control 100 GST Clearing [L] Creditors Control 10 Sales Returns [-R] Debtors Control 250 GST Clearing [L] Debtors Control 25 Debtors Control [A] Sales Returns/GST 275 Debtor – Subsidiary [A] Sales Returns/GST 275 Stock Control [A] Cost of Sales 100 Cost of Sales [E] Stock Control 100

4. 15.5 Summary of PURCHASE AND SALES returns Valued using First in First Out (FIFO) Valued at the lowest cost of stock on hand ( conservatism ) Valued using First in First Out (FIFO) Valued using First in First Out (FIFO) Valued using First in First Out (FIFO) Stock Loss Stock Gain Donation Drawings Sales Valued at the amount shown on the supplier’s Credit Note Valued using Last in First Out (LIFO) reverse order Purchase Return Sales Return

5. Transactions effecting Stock Control … 15.5 Summary of PURCHASE AND SALES returns Stock Control [A] Stock is purchased from suppliers There is a stock gain The owner contributes stock personally Stock is sold to customers There is a stock loss The owner withdraws stock for personal use Stock is donated for advertising purposes Sales return from a customer Purchase return to a supplier

6. task In-class Homework Ex15.10 X Ex15.11 X Ex15.12 X Ex15.13 X Ex15.14 X Ex15.15 X Ex15.16 X