Goods Outward Book is meant for recording all returns of goods which were __________.

sold on credit

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purchased on credit

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purchased on cash

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none of the above

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Solution

The correct option is D purchased on credit
Return of goods, purchased on credit is recorded in the purchase return book. Purchases book shows a debit balance, so the purchases return book will definitely show a credit balance, because purchases return book will definitely show a credit balance, because purchase return is entirely reverse to purchase.

Suggest Corrections

Similar questions

Rectify the following errors:

(a)	Credit Sales to Mohan Rs 7,000 were recorded in purchases book.
(b)	Credit Purchases from Rohan Rs 900 were recorded in sales book.
(c)	Goods returned to Rakesh Rs 4,000 were recorded in the sales return book.
(d)	Goods returned from Mahesh Rs 1,000 were recorded in purchases return book.
(e)	Goods returned from Nahesh Rs 2,000 were recorded in purchases book.

Mention the subsidiary books in which the following transactions are recorded with reason thereof.

(i) Purchase of furniture on credit for use in a shop.

(ii) Sale of goods on credit.

(iii) Goods returned by debtors

(iv) Purchase of stock on credit.

(v) Providing for interest on capital to a proprietor.

(vi) Goods returned to creditors.

(vii) Sale of goods for cash.

Rectify the following errors.

(a) Credit Sales to Mohan Rs. 7,000 were recorded in purchase book.

(b) Credit Purchase from Rohan Rs. 9,000 were recorded in the sales book.

(d) Goods returned from Mahesh Rs. 1,000 were recorded in purchase return book.

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