Accounting·Basic accounting systems · NSSCO 2.6
Credit notes & the Returns Journals
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Sometimes goods come back — a customer returns something faulty, or we send the wrong order back to a supplier. In this lesson we meet the credit note and the debit note, learn to tell returns inwards from returns outwards, and then prepare and post both the Debtors Returns Journal and the Creditors Returns Journal, all the way to the ledgers.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.6):
- Explain the contents of and complete credit and debit notes
- Differentiate between a debit note and a credit note
- Explain returns inwards and outwards
- Explain the reasons for returns
- Explain why the Returns Journals are used
- Prepare the Debtors Returns and Creditors Returns Journals from details extracted from credit notes
- Post from the Debtors Returns and Creditors Returns Journals to the appropriate ledgers
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