HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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Return Inward is Deducted from Purchases. - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

Return inward is deducted from purchases.

Solution

False

Explanation: Return inward implies goods that are returned by the customers of a firm. In other words, it can also be termed as sales return. Thus, return inward is deducted from the sales of the firm so as to ascertain the amount of net sales. However, Return outward is deducted from the amount of purchases.
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APPEARS IN

 2013-2014 (March) (with solutions)
Question 1.4.3 | 1.00 mark
Solution Return Inward is Deducted from Purchases. Concept: Adjustments - Unrecorded Purchases and Sales.
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