Advertisements
Advertisements
Question
Return inward is posted in ______.
Options
Profit and Loss Account debit side
Profit and Loss Account credit side
Trading Account credit side
Trading Account debit side
MCQ
Advertisements
Solution
Return inward is posted in Profit and Loss account debit side.
Explanation:
Returns inward (sales returns) reduce gross sales and are treated as contra‑sales; they are transferred to the Profit & Loss Account on the debit side to reflect reduced revenue when preparing final accounts.
shaalaa.com
Is there an error in this question or solution?
