28 March 2009
The closing Stock as on 31.03.08 was ascertained as physically counted. Thereafter sale retrun is received after 31.03.08 pertaining to sales made in the year 07-08.
An accountant adjusted the Sales Return against the Opening Stock of 1.04.08 however I am of the view that the Sales return should be adjusted against Closing STock Figure as on 31.03.08.
Pls. advie the correct treatment for Sales Return.
adjustment with the opening cannot be made as it shoould be the same figure as the closing figure in march 08.
If the sales return are received back in the shop or godown in march then stock will be increased and sales will be decreased accordingly.
However if the goods are received back in april then no adjustment will be made in march, you have to post entry of sales return in april 08. so no adjustment in stock as on 31.03.2008 and 01.04.2008.
CAclubindia
