Hello everyone!
I am quite new to accounting and I am not sure about everything yet. This question might be very obvious to you, however, its a nightmare for me.
I was provided with a list of Sales and Purchases with dates of transactions, company names, invoice numbers and net amounts.All companies are registered for VAT so I worked out gross amounts for the transactions and transferred them to T-accounts.
However, what happens with returns? I have got a list of Sales Returns and a list of Purchase Returns also with the net amounts only. Should I work out the gross amount (i.e. amount with VAT included) again and then transfer them to T-accounts?
Thanks in advance for any ideas
Have a great day!
I am quite new to accounting and I am not sure about everything yet. This question might be very obvious to you, however, its a nightmare for me.
I was provided with a list of Sales and Purchases with dates of transactions, company names, invoice numbers and net amounts.All companies are registered for VAT so I worked out gross amounts for the transactions and transferred them to T-accounts.
However, what happens with returns? I have got a list of Sales Returns and a list of Purchase Returns also with the net amounts only. Should I work out the gross amount (i.e. amount with VAT included) again and then transfer them to T-accounts?
Thanks in advance for any ideas
Have a great day!