In case of goods sent on sale or return basis

1. Check whether a separate memoranda record of goods sent out on sale or return basis is maintained. 
2. See the price of such goods on the sales account and the trade receivable’s record. Confirm from the memoranda account that on the receipt of acceptance from each party, his account has been debited and the sales account correspondingly credited. 
3. Check that in case of expiry of a period of approval at the end of the year either have been received back subsequently or customers’ accounts have been debited. 
4. Ensure that goods sent out on approval in respect of which the period of approval had not expired till the close of the year are included in the closing inventory.