A sales journal entry records cash, credit sale to a customer. It does more than record the total money received from business transactions. Sales entries also reflect changes to accounts such as Cost of Goods Sold, Sales Tax Payable accounts, and Inventory.
To create a sales entry, debit, and credit the appropriate accounts are a must. The end debit balance and end credit balance should be equal. Assets and expenses are increased up by debits and decreased down by credits. Equality, liabilities, and revenue are increased up by credits & decreased down by debits. In this article, we will look at how to deal with sales return entry in tally. If you are looking for some lessons in journal vouchers in tally, you can find the same by clicking here
Reasons for Sales Entry
Goods are returned to the seller due to some of the following reasons:
- Damaged/Defective Product
- Late shipment of products
- Wrong products shipped
- expired products
- Delays in receipts
- Excess quantity shipped
- Incorrect specification of the product.
Types of sales return
Type of Account
Sales returns are nominal accounts and sales returns show zero/favorable balance. It can also be termed as contra-revenue account as sales revenue.
Accounting approach
- Traditional accounting approach
- Modern accounting approach
How do you pass a sales entry?
Steps to be followed while passing a sales entry are as follows:
- In-Company Info while Creating Company-:Make Accounts with Inventory instead of Accounts.
- In Sale Ledger: Make Inventory Values affected as Yes.
- Select Item by using Alt C.
- Put names of the items.
- Select Unit by using Alt C.
Where do we record sales entries in tally?
Record local sales of goods
The steps to record local sales of goods on tally are as follows -
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. In Party A/c name, select customer ledger for credit sales, and enter Party Details.
3. Select sales ledger.
4. Select the required stock items & specify the quantities & rates.
5. Press Enter and save.
Print the invoice
The steps to print the invoice in the tally are as follows -
1. Click P: Print the invoice recorded above. The report titles appear as per GST rules on the Printing screen.
Press Enter to print.
Conclusion
All the information about the Sales record in Tally is given in detail above. You can understand each point very clearly without any difficulties getting to know you in deep knowledge. Some photos are also pasted to understand quickly.
