Returned goods

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Ansari (Querist)
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03 December 2009 X, who is selling products ABC, EFG,IJK, sells goods on 6 Months credit to Y of Rs. 1,00,000 on 01.04.09 for which details are as under--------------

Stock No. Particulars Qty Rate Amount
--------- ----------- --- ---- ------
101-110 ABC 10 2500 25000
146-150 EFG 5 2000 10000
201-220 IJK 20 3250 65000
TOTAL ------
100000
------

on 31.08.09 Y has closed down his business & following goods ve been returned
by Y for final settlement-----------

MNO 20 2500 50000
QRS 50 1000 50000
TOTAL ------
100000
------

X is not dealing in product MNO,QRS.

My question is how can I record those good in my Stock register

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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03 December 2009 You have received back the goods into which you are not dealing. The possibilities, the scnario emerges as under;

1. It is assumed that you also desire to accept the said goods in order to fatch final settelement with your customer.

2. You have to ensure that the comodity is included into your VAT registration.

3. Book the same as normal purchase, since the goods receipt by you could not be treated as sales return (being different commodity than sold by you).

Regards

Ansari

Ansari (Querist)
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03 December 2009 Assessee is not covered under VAT
in respect of point no. 3 ----- wat abt sale of Rs. 100000/- which has increased in book but not in actual sense.

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Prashant

Prashant (Expert)
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04 December 2009 I agree with Kishanlal ji.

It is not treated as sales return, It will your purchase..

Madhusudan Bohra

Madhusudan Bohra (Expert)
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05 December 2009
This is a case in which sale has taken place and the payment has been made by Y in form of giving MNO and QRS instead of paying money

This is in no way a goods return case where you need to touch your sales.

In this case, you should credit your recivable with the fair value of the MNO and QRS (balance if any should be w/off) and for the same amount your purchase cost should be debited.

Can u pl. tell me how you are going to deal with MNO and QRS??

Ansari

Ansari (Querist)
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05 December 2009 It means I ve to pay extra income tax on the income which I ve not earned actually.