Write the difference between return inwards and return outwards.

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Solution

Basis of Difference

Return Inwards

Return Outwards

Meaning

Goods sold to the customers, are returned by them.

Goods purchased are returned to the suppliers.

Balance

It has debit balance.

It has credit balance.

Treatment

It is deducted from Sales in the Trading Account.

It is deducted from Purchases in the Trading Account.

Issued

Credit note is prepared by the seller.

Debit note is prepared by the buyer.

Reduction

It reduces the payment from the Debtors.

It reduces the payment made to the Creditors.

Term

It is also termed as Sales Returns.

It is also termed as Purchases Returns.

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Similar questions

Q. Sales - Rs.

1, 60, 000

, Returns Inwards - Rs.

10, 000

, Gross Profit - Rs.

60, 000

and Returns outwards - Rs.

15, 000

. The cost of goods sold is:

Given the following data: Purchases Rs. 4,500, Returns outwards Rs. 300, Returns inwards Rs. 150, Carriage outwards Rs. 830, Carriage inwards Rs. 260, Opening stock Rs. 935, and closing stock Rs. 1,100. The value of the cost of goods sold is:

Q. Assuming no returns outwards or carriage inwards, the cost of goods sold will be equal to _______.

Q. Prepare Returns Inward and Return Outward Books of Manoj, Mumbai from the following transactions and post them into Ledger Accounts:

2019
March 1	Mathur Bros., New Delhi, returned:
	5 pairs of Shoes for being defective @ ₹ 2,000 per pair
	Less: Trade Discount 10%, IGST was charged @ 18%
March 5	Returned to Kanpur Leather Private Ltd., Kanpur:
	100 pairs of Chappals being not up to the approved sample. They were purchased @ ₹ 300 per pair
	Less: Trade Discount 15%
	IGST was paid @ 18%
March 12	Baluja Shoes Co., Mumbai, returned 12 pairs of ladies chappals sold to them @ ₹ 4,000 per pair
	Less: Trade Discount 10%, CGST and SGST was charged @ 9% each
March 20	Returned to Bata Shoes Pvt Ltd., Mumbai:
	100 pairs B.S.C Canvas Shoes @ ₹ 500 per pair
	Less: Trade Discount 15%
	CGST and SGST was paid @ 9% each

Rectify the following errors.

(a) Sales book undercast by Rs. 300.

(b) Purchase book undercast by Rs. 400.

(d) Return outwards book undercast by Rs. 100.

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Basis of Difference	Return Inwards	Return Outwards
Meaning	Goods sold to the customers, are returned by them.	Goods purchased are returned to the suppliers.
Balance	It has debit balance.	It has credit balance.
Treatment	It is deducted from Sales in the Trading Account.	It is deducted from Purchases in the Trading Account.
Issued	Credit note is prepared by the seller.	Debit note is prepared by the buyer.
Reduction	It reduces the payment from the Debtors.	It reduces the payment made to the Creditors.
Term	It is also termed as Sales Returns.	It is also termed as Purchases Returns.