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FOR SALE RETURN ENTRY WILL BE:
RETURN INWARD / SALE RETURN (DR)
CASH (CR)
IN CASE OF PURCHASE:
CASH
PURCHASE RETURN
As I have notice the difference between cash and credit payment, on cash payment the service provider are very active compared to credit payment since they have to wait for a period of time.
DR. purchased
CR. CASH
DR.CASH
CR.CAPITAL
For cash:
Cash a/c dr
To sales a/c cr.
For purchase:
Purchase a/c dr
To cash a/c cr.
For purchase return:
cash / xyz... dr
to purchase return cr.
sale retun Credit Note or purcahse return Debit note
For cash sales: cash a/c debit,sales a/c Credit For credit sale:Debtos a/c debt, sales a/c Credit For cash Purchases : Purchses a/c debit, cash a/c credit For Credit Purchases:Purchases a/c debit, Credit a/credit For Credit note:Creditor a/c debit, Credit to party a/c For Debit Note: Debtors a/c credit, Debit to Party a/c