Maharashtra State BoardHSC Arts 12th Board Exam
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Select the most appropriate alternative from those given below and rewrite the statement. Return outward are deducted from __________________. - Book Keeping and Accountancy

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MCQ
Fill in the Blanks

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

Return outward are deducted from __________________.

Options

  • Purchases

  • Sales

  • Capital

  • Debtors

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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.

Concept: Partnership Final Accounts
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