Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement

Select the most appropriate alternative from those given below and rewrite the statement. Return outward are deducted from __________________. - Book Keeping and Accountancy

Question

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

Options
  • Purchases

  • Sales

  • Capital

  • Debtors

Solution

Return outward are deducted from purchases.
Explanation: Returns outward means purchases return. It is deducted from purchases because these are the goods which are returned to the suppliers; therefore, these are not to be included in the amount of purchases. To find the accurate amount of gross profit, net purchases (i.e. purchases less purchases return) are debited to the Trading Account.

  Is there an error in this question or solution?
Advertisement

APPEARS IN

 Micheal Vaz Solution for Class 12 Accounts - Book Keeping and Accountancy (2019 (Latest))
Chapter 2: Partnership Final Accounts
Exercise | Q: 11 | Page no. 65
 2017-2018 (March) (with solutions)
Question 1.3.5 | 1.00 mark
Advertisement

Video TutorialsVIEW ALL [1]

Select the most appropriate alternative from those given below and rewrite the statement. Return outward are deducted from __________________. Concept: Partnership Final Accounts.
Advertisement
Share
Notifications

View all notifications
Login
Create free account


      Forgot password?
View in app×