Question

Goods sold on credit when returned by the customers due to certain reasons are only recorded in the Return outward Book.

• A. True
• B. False

Answer 1

The correct option is B False

Goods sold on credit when returned by the customer is recorded in returned inward book or sales return book. Sales return book shows a debit balance as it is reverse to the sales, which has credit balance. When the goods are returned by the customer one note is prepared which is called as "Credit note". The returned outward book is used to record return of goods purchased on credit.