CMA Foundation · Fundamentals of Financial and Cost Accounting · Accounting Cycle
A trader's Sales Book for the month shows credit sales of Rs 2,40,000. The Sales Returns Book shows returns of Rs 15,000 from customers. Cash sales were Rs 60,000. What is the total net sales to be transferred to the Trading Account?
Net sales are Rs 2,85,000. Credit sales of Rs 2,40,000 plus cash sales of Rs 60,000 give Rs 3,00,000, and customer returns of Rs 15,000 are deducted. Returns inward reduce sales, so they must be subtracted before transfer to the Trading Account.
- ARs 2,85,000Correct
- BRs 3,00,000
- CRs 2,25,000
- DRs 3,15,000
Explanation
Total sales = 2,40,000 credit + 60,000 cash = 3,00,000. Deducting returns of 15,000 gives net sales of 2,85,000. Rs 3,00,000 ignores the returns, while Rs 2,25,000 omits cash sales.
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