Return outwards appearing in Trial Balance are deducted from ______________.

Sales

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Purchases

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Returns Inward.

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Capital

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Solution

The correct option is B Purchases
Return outwards are the return of purchased goods, it shows the flow of goods out of the business without any sale taking place. This is deducted from the purchases account because it is no more in the business and has to be removed to find the actual position of the firm.

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