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Question

Return Inwards appearing in Trial Balance are deducted from:

A
Purchases
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B
Sales
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C
Returns Outwards
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D
Capital
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Solution

The correct option is B Sales
Return inwards is the flow of goods in the business which were sold. It is deducted from the sales balance to show the actual position of the firm and deduct the amount which is returned as it is no more a part of sales and is with the firm itself.

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