Manvi In: 1. Financial Accounting > Ledger & Trial Balance How to show sales return in trial balance? How to show sales return in trial balance? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent Simerpreet Helpful CMA Inter qualified 2021-07-28T15:34:35+00:00Added an answer on July 28, 2021 at 3:34 pm This answer was edited. Sales Return is shown on the debit side of the Trial Balance. Sales Return is also called Return Inward. Sales Return refers to those goods which are returned by the customer to the seller of the goods. The goods can be returned due to various reasons. For example, due to defects, quality differences, damaged products, and so on. In a business, sales is a form of income as it generates revenue. So, when the customer sends back those goods sold earlier, it reduces the income generated from sales and hence goes on the debit side of the trial balance as per the modern rule of accounting Debit the increases and Credit the decreases. For Example, Mr. Sam sold goods to Mr. John for Rs 500. Mr. John found the goods damaged and returned those goods to Mr. Sam. So, here Sam is the seller and John is the customer. The journal entry for sales return in the books of Mr. Sam will be Particulars Amt Amt Sales Return A/c 500 To Mr John 500 Treatment in Trial Balance 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What are some examples of deferred revenue expenses? Are brands intangible assets? What comes in debit side of Realisation account? What is recorded in the Realisation account? What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance?