wht will be the tratment for the following adjustment..??

goods costing rs. 20000 were sent to a customer for rs.2400 on 30 march 2011 on sale or return basis. this was recorded as actual sales.

Hi Muskan,

The following is the accounting treatment of the above adjustment.

I. In Trading Account
  1. Rs 2,400 should be subtracted from the amount of Sales 
  2. Rs 2,000 should be added in the amount of Closing Stock 
II. In Balance Sheet​
  1. Rs 2,400 should be deducted from the amount of debtors as it is assumed to be credit sales.
  2. Rs 2,000 should be added to Closing Stock in the Balance Sheet.
Hope this clarifies your doubt.
Keep Posting!!!


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