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Deducted from purchases – Dr Side
Deducted from sales – Dr side
Deducted from purchases – Cr Side
Deducted from sales – Cr side
Returns inwards are goods returned to the selling entity by the customer, such as for warranty claims or outright returns of goods for a credit. So Deducted from sales – Cr side
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Vinay Kumar
sir! it is a deduction from sale for net sale but logically its a entry at Debit side as reduction in sale(Income reduced)
Understood Sir! Much appreciated please.
as sale return is related with sales, it is shown as reduction on credit side of trading account, it reduces Gross profit of the firm but it is never written individually on debit side as it a resultant of sale
Brij Mishra
Wrong answer marked
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