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NEAP 2007 Accounting Trial Q1.1.2

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costargh:
Budgeting question

If anyone has this exam it would be great if you could clarify something for me. In this example you have to reconstruct the Stock Control ledger to find out how much stock is purchased on credit so that you can then reconstruct the Creditors Control ledger and find Cash payements to creditors.

My question is:
Why do you NOT include Sales returns in the stock control ledger when reconstructing it?

In the answers they dont include it and i dont know why :(

fusion:
hey
sales return relates only to sales, you find out the cost price of the sales return, and report is as cost of sales in the account reconstruction for stock control. Note i havent done this paper, but im guessin thats what you're after.

costargh:
Thanks. I think I get it. I'll go over my notes on account reconstruction later :)

aksman:
The General Journal entries for a sales return does involve a stock control/cost of sales double entry for the cost of the stock returned, so fusion is right. Now that I take a second look at the exam, I find it strange that there is isn't the debit entry in the Stock Control ledger for the sales return, plus they don't give any indication of mark-up and no way of calculating the cost price  ???
Technically there should be an entry in the Stock Control Ledger for it.

costargh:
Soooooo what is the answer?

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