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Lesson 17 D1bC2d

Returns

In this lesson, you'll learn how to record sales and purchase returns in double entry bookkeeping, a fundamental technique for Financial Accounting and Financial Reporting papers.

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In this lesson

  1. 0:00 Understanding Sales and Purchase Returns
  2. 0:28 Recording Cash Returns Step by Step
  3. 1:50 Recording Credit Returns Step by Step
  4. 3:03 Worked Example: Cash Sale with Return

About this lesson

You'll discover the key principle: returns reverse the original transaction, with different treatments depending on whether the initial sale or purchase was cash or credit. Through worked examples, you'll see how to debit and credit the correct accounts—from reducing cash and income on cash returns, to adjusting receivables and payables on credit returns—so you can confidently handle returns in your exam and practice.

Duration: 5m

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