Maharashtra State BoardHSC Arts 12th Board Exam
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State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

MCQ

State whether the following statement is True or False.

Return Inward is deducted from purchases.

Options

  • True

  • False

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Solution

False

Explanation:
 Returns inward represent sales return. So, these must be deducted from the amount of total sales. Sales return (i.e. returns inward) are the goods that are returned to the firm by the customers. Hence, the figure of net sales, i.e. sales less sales return, is credited to the Trading Account.

  Is there an error in this question or solution?
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 2 Partnership Final Accounts
Exercise | Q 15 | Page 65
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