a. Return Inward Journal: When customers return the goods to the business, it will be recorded in a separate book called 'Sales Returns Journal'. Normally, if the number of such returns is small, they can be recorded in the journal itself. But if their number is large, it is better to maintain a separate book called Sales Returns Journal. This book is also called 'Returns Inwards Journal'.

b. Return Outwards Journal: In any business, sometimes goods purchased may have to be returned to the supplier either partly or fully. This may become necessary when they are found to be defective, damaged in transit, inferior quality, short weight, received too late (off season), or not in conformity with the order given. If the number of such returns is small, they can be recorded in the journal itself. But, if it is large, a separate book called 'Purchases Returns Journal' should be used for recording these transactions. This book is also called 'Returns Outwards Journal'.

c. Acceptance of a Bill: The acceptance of a bill is the indication of courtesy extended by the drawee or his/her agent towards the order of the drawer. A bill is said to have been accepted when its drawee signs across the face of the bill with or without writing the word ‘accepted‘ and delivering it back to the holder or separately giving him a note of his acceptance. The drawee of a bill incurs no liability on any bill addressed to him for payment until gives his/her acceptance and thereby becomes the acceptor thereof. A refusal to accept gives the holder (payee) no right against the drawee. However, the holder in such a situation can give notice of dishonor and sue the drawer or endorser straight away, i.e., without waiting for the date of maturity of the bill.

d. Discounting a bill: When customers may discount the bill with his banker. If the drawer wants money before the due date, he can discount the bill with his banker. The process of encashing the bill with the banker before maturity is called 'discounting a bill'. When a bill is discounted, the bank is actually lending money for the period between the date on which the bill is discounted and the date on which it attains maturity. So, the bank is entitled to some interest. The bank calculates such interest and deducts it from the amount of bill before crediting it to the customer's account. The amount so deducted is called 'discount'. Discounting of bills with the bank is a common practice

e. Retiring a bill: It may happen sometimes that the drawee has surplus funds. So he may decide to pay the amount of the bill before the date of maturity. Thus, he asks the drawer or the holder whether he is ready to accept the payment before the due date of the bill. The drawer or the holder may agree to pre-payment. This is called the retirement of bills of exchange In order to encourage the drawee to pay the bill before the maturity date, the drawer gives him a discount. This discount is known as a rebate on bills. Thus, we calculate the rebate on bills at a certain rate of interest for the time between the date of payment and the date of maturity The rebate on bills is an expense of the drawer or the holder of the bill. While it is an income of the drawee or the payer. All journal entries are similar as in case of honor of the bill on the maturity date except for the rebate