Multiple choice

Under sales on return or approval basis when the transaction are large and the seller sends the goods on approval or return basis, the accounting treatment will be

  1. no journal entry

  2. entry in sales or return journal

  3. entry in sales or return day book

  4. Sundry debtors A/c Dr. to sales account

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 When the goods are sent for approval basis, transaction is recorded in Sales or return Day book.