What is Purchase and Purchase Return

Transcript

Purchase and Purchase Return Example 1 Suppose B Purchase 5 Mobiles from A @10000 per Mobile 2 of the Mobiles were faulty, So B returned to A What is Purchase, Purchase Return and Net Purchase? 5 Mobiles @ 10000 each A B 2 Mobile @ 10000 each Answer: Quantity Rate Amt Purchase 5 10000 50000 Purchase Return 2 10000 20000 Net Purchase 30000 What is Purchase It is the transaction involving exchange of money to obtain goods *Goods are purchased for resale or Manufacturing What is Purchase Return It is the transaction where goods are returned to supplier It happens because goods are faulty, defective or any other reason It is also called as Return outward Sales and Sales Return Example Suppose A sold 3 Mobiles to Customer B @ 10000 each One of Mobile was Returned by B What is Sales, Sales Return and Net Sales? 3 Mobiles @ 10000 each A B 1 Mobile @ 10000 each Quantity Rate Amt Sales 3 10000 30000 Sales Return 1 10000 10000 Net Sales 20000 What is Sales It is the transaction involving exchange of goods and services for money When we sell goods,we exchange goods to get money from customer What is Sales Return It is the transaction where goods are returned by Customer It happens because goods are faulty, defective or any other reason It is also called as Return outward "Good Inward or Outward " It is other Name for Sales Return and Purchase Return 3 Mobile @ 10000 each A B 1 Mobile @ 10000 each For A For B This is This is Sales Purchase and and Sales Return Purchase Return Since goods are Since goods Received back are Sent Out Sales Return Purchase Return is Goods Inward is Goods Outward Difference in Cash & Credit Sale Cash Sale Credit Sale Receipt settled Receipt settled Immediately at later date after sale after sale