Replacement of goods

Shivani (Learner) (1881 Points)

16 November 2015

Hi friends

If X LTd. sells a TV to Mr. Y for rs. 50000.

it is found to be defective and X Ltd. replaces it to Y with a new TV

what will b the entries in books of X LTd. and Y

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4 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 09 December 2015

We can treat is as Sales Return so that Inventory also effected accordingly.

Shivani (Learner) (1881 Points)
Replied 13 December 2015

dear sir

if we get a sale return of an item due to some defect and which we know will not sell now, then how will we make its treatment in books.

what will be the entry and treatement in tally.

jaya krishna (Chartered Accountant) (262 Points)
Replied 13 December 2015

If there is any provision maintained for guaranteed amount first adjust with that amount estimated loss incurred for recovered product...

V P Narasimhan (Accounts Manager) (791 Points)
Replied 14 December 2015

Dear Madam

Sales Return A/c Dr

To: S. Debtors

Net Result: Sales+ Tax due will reduce to that extent & Out Standing i.e receivable from the Client will reduce to that extent .

Hope the abvoe clarifies.

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