Bate Date Particulars LE Details Rs. Amount Rs. 1993 Sept. 3 M/s Satya Prakash and Co. 10 kg. of Tea @ 22.50 per kg 15 kg. of Cocoa @ Rs. 15/- per kg 225.00 225.00 450.00 45.00 405.00 Sept. 13 450.00 1.400.00 1,850.00 Sept. 25 Less Trade Discount 10% M/s Gyan Prakash & Bros. 18 kg. Tea @ Rs. 25/- per kg 35 kg, Coffee @ Rs. 40/- per kg. M/s Shiv Prakash 10 Boxes of Biscuits of 10 kg each @ Rs. 10/-per kg 60 Boxes of Sweets each of 15 kg. @Rs. 5/- per kg 1,000.00 4,500.00 5,500.00 7,755.00 Note: The trade discount of the selling price should be deducted on the invoice on the net sale carried out and posted into the ledger only. Purchases Returns Book: Sometimes goods purchased may be returned by us to the suppliers due to their being of the wrong kind, or not upto the sample, or because they are damaged. These returns are recorded in the "Purchases Returns Book" or "Returns outward Book". Allowance claimed for short weight, overcharge, breakage, etc., are usually also dealt with in the same book. The person from whom allowances are claimed or to whom goods are returned is debited and the "Purchase Returns and Allowance Amount" credited at the end of each month with the monthly total of Purchase Returns Book. Some accountants make a distinction between returns and allowances. The total of allowances then will be posted to the credit of Allowances Account which shall be closed to trading account through the Purchases Account The ruling of this book similar to that of Purchase Book and Sales Book The treatment of trade discounts will be similar to that in the case of Purchase Book and Sales Book The amount to be entered will be the net figure, i.e. after deduction of trade discount x33 Illustration 3. Enter the following in the books of M/s Banwari Lal Kaka & Sons, Delhi. 1993 Sept. 4 Sept 14 Returned to M/s Rekha & Co. 5 New Style of General English @ 3/- per copy. 2 New Style Arithmetic @ Rs. 3.50 pr copy Trade Discount @ 10% Returned to M/s Sunita & Co. 3 New Style co-ordinate Geometry @ Rs. 5/- per copy 7 New Style Memory-@ Rs. 2/- per copy Returned to M/s Usha & Co. 15 New Style Geometry @ Rs. 7/- per copy. 19 New Style Book-keeping @ Rs. 5/- per copy, Packing Charges Rs. 10/- Sept 24