Question

Bob returns goods bought on credit from Tariq, which ledger a/c entries record this in Tariq's book?

Debit Credit
A. Bob Sales returns
B. Bob Purchase returns
C. Sales return Bob
D. Purchase returns Bob​

Answer 1

D. Purchase returns Bob

Step-by-step explanation:

• Purchase refers to payment by credit
• So, it is either B or D
• D sounds like the more sensible option

Answer 2

C. Sales return, Bob

`\begin{tabular} \cline{1-4} \cline{1-4} \multicolumn{2}{\sf Debit } & \multicolumn{2}c{\sf Credit} \\ \cline{1-4} \multicolumn{2}c{\sf Bob } & \multicolumn{2}c{\sf sales returns} \\ \cline{1-4} \multicolumn{2}{\sf Bob } & \multicolumn{2}c{\sf purchase returns} \\ \cline{1-4} \multicolumn{2}c{ \sf Sales returns } & \multicolumn{2}c{Bob} \\ \cline{1-4} \multicolumn{2}{Purchase returns} & \multicolumn{2}c{Bob} \\\cline{1-4} \end{tabular}`

Breakdown of what's happening:

Credit means borrowing goods and will return them later. Here Credit: Bob
as he borrowed goods from Tariq and returning them.

When comes to sales return and purchase return. Recall,

purchase return: credited

sales return: debited

Hence, debit - sales return, credit - Bob. option C is correct.