Treatment of return inwards is shown in trading account as ........

General Accounting Principles Accounting cycles

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Treatment of return inwards is shown in trading account as-

Deducted from purchases – Dr Side

Deducted from sales – Dr side

Deducted from purchases – Cr Side

Deducted from sales – Cr side

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Explanation:

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)

Vinay Kumar

Understood Sir! Much appreciated please.

Ankur sharma

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