When any customer returns the goods to the seller then the seller will make the Sales Return Voucher.  Thus, the Sales Return Voucher is prepared for the following transactions:-

  • Material returned by the customers.
  • Rate difference against goods sold.

How to Prepare Sales Return Voucher

While making the sales return voucher, the sales or sales return account is debited and the customer’s account is credited. In some countries like India, the tax charged on sale is shown separately because it is compulsory to show the sales and sales tax amounts in the periodical sales tax returns, which are submitted with Sales Tax Authorities. In this case the customer’s account is credited with full value of material returned and sales and sales tax accounts are debited with the respective values.

Points  to be Kept in Mind for Preparation of Sales Return Voucher

While preparing the sales return voucher, the accountant must keep the following points in mind:-

  • Sale return must be approved by sales or marketing department or concerned authorities.
  • Totals of debit note of customer and credit note of supplier,  should be correct.
  • Date of debit note or the delivery challan is also very important because in some countries like India the detail of sales and sales return is submitted to the sales tax authorities. If the date of document relating the material return is not matching with the return period then the deduction of sales tax on material return will not be allowed.
  • Amount must be written both in figures and words.
  • Sales return voucher must be signed by the accountant and the authorized person.

Support Documents Required for Sales Return Voucher

Following support document shall be required for sales return vouchers:-

  • Delivery challan  of the customer.
  • Transporter’s receipt, if any.
  • Debit note of the customer.
  • Credit Note of the supplier corresponding to the debit note of purchaser.
  • Material receipt challan by purchase department.

Illustration:

M/s Gift House, Delhi returned the goods to M/s XYZ Limited – Delhi as per particulars given below:-

  • Delivery Challan No. 100 Date: 20.07.15
  • Debit Note No. 211 Date 20.07.15 for Rs.2100/=
  • Value of Goods Rs.2000/= (Local Sale @ 5% Taxable)
  • Value of Sales Tax Rs.100/= (Local Sales Tax @ 5%)
  • Total Value of Debit Note Rs.2100/=
  • Credit Note No. 55 dated 31.07.15 for Rs.2100/=issued by M/s XYZ Limited in response to the debit note of M/s Gift House.
  • M/s Gift House purchased this material form M/s XYZ Limited on 15.07.15 vide Sale Invoice No. 1512.

Prepare the necessary voucher in the books of M/s XYZ Limited.

Solution: 1 (Simple entry)

Sales Return Voucher shall be prepared for above transaction on 31.07.15 because the returned material is being accepted by M/s XYZ on 31.07.15 and the credit note also is being issued on 31.07.15. The Voucher shall be prepared as under:-

M/S XYZ LIMITED

SALE RETURN VOUCHER

Voucher No. 111                                                                                      Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Sale Return Account

2100/=

Total

2100/=

Credit: M/s Gift House

2100/=

Total

2100/=

Narration: Being goods returned by M/s Gift House against our Invoice No. 1512 dated 15.07.15 vide their debit note no. 211 dated 20.07.15 and our credit note no. 55 dated 31.07.15 enclosed.
Amount in words: Rupees Two Thousand  One Hundred only.
Manager                                              Accountant

Illustration – 2 (To make separate entries for Sales, Sales Tax and Cartage etc.):

We shall take the illustration No.1 for this purpose.

Solution:

Now a day, in India, separate detail is kept for all types of sales and sales tax amount thereon. Practically also, the Sales Return Voucher should show separate details for net value of goods returned and sales tax etc. According to above transaction, it is clear that the supplier and purchaser are from same state i.e. Delhi. Therefore, this sale shall be treated as local sales and the Sales Return Voucher shall be prepared as under:-

M/S XYZ LIMITED

SALE RETURN VOUCHER

Voucher No. 111                                                                                      Date: 31.07.12

PARTICULARS

AMOUNT IN Rs.

Debit:  Local Sale Return Account

2000/=

Debit: Local Sales Tax Account

100/=

 

 

Total

2100/=

Credit: M/s Gift House

2100/=

Total

2100/=

Narration: Being goods returned by M/s Gift House against our Invoice No. 1512 dated 15.07.15 vide their debit note no. 211 dated 20.07.15 and our credit note no. 55 dated 31.07.15 enclosed.
Amount in words: Rupees Two Thousand  One Hundred only.
Manager                                              Accountant

Illustraion-3 (To make more detailed voucher of above transaction)

We take the above example only.

Solution: 

M/S XYZ LIMITED

SALE RETURN VOUCHER

Voucher No. 111                                                                                        Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Local Sale Return @ 5% Taxable Account

  2000/=

Debit: Local Sales Tax @ 5% Account

100/=

 

 

Total

2100/=

Credit: M/s Gift House

2100/=

Total

2100/=

Narration: Being goods returned by M/s Gift House against our Invoice No. 1512 dated 15.07.15 vide their debit note no. 211 dated 20.07.125and our credit note no. 55 dated 31.07.15 enclosed.
Amount in words: Rupees Two Thousand  One Hundred only.
Manager                                              Accountant

Basically, it is the systematic way to prepare the sale voucher because it gives the clear picture of each and every detail, to be kept for sales tax purpose. To show the percentage, it is necessary to keep the separate details for each type of sales because there may be different rates of taxes.

 

RELATED TERMS: