(28) Goods
Goods
Goods include all these things which
are purchased for resale or which are used for producing the finished products
which are also mean to be sold. Thus for a furniture dealer purchase of Tables
and Chairs in terms as goods, while for others it is furniture as an Assets.
Purchases
The terms purchases is used for
purchase of goods for resale or for producing the finished products which are
also to be sold. The term purchases includes both cash and credit purchases of
Goods.
Purchases Return/Returns
Outwards
Goods purchased may be returned to
the Supplier for any reason, say they are defective, are known as purchases
Return. Such returns are also ‘termed as returns outwards'.
Sales
Sales means transfer of ownership of
Goods or Services to customers for a price. The term sales includes both cash
and credit sales. The term sales is never used for the sale of Assets. For Example;
if cloth merchant sells cloth, it will be termed as sales, but if the same
cloth merchant sells old furniture it will not be termed as sales.
Sales Return’
Returns Inward
Some Customers might return the goods
to them these are termed as sales returns or returns inwards.
Debtors
Those persons or firms to whom Goods
have been Sold or services rendered on credit and payment has not been received
from them. For Examples; Goods sold for Rs. 50,000 to Mohan on credit. He will
continue to remain the debtor of the Business so long as, he does not make the full
payment.
Creditors
Those persons or firms from whom
goods have been purchased or services taken on credit and payment has not been
made to them. For example: If Goods purchased from Ajay for Rs. 40,000 on
credit. He will continue to remain the creditor of the firm so long as, the
full payment is not made to him.
