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Question
Write the difference between return inwards and return outwards
Write the difference between return inwards and return outwards
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Solution
The difference between return inwards and return outwards is explained based on the below factors:
- Based on definition:
Return inwards is defined as the receipt back of the goods by the seller which is originally sold to the buyer because of excess goods or defective goods.
While return outwards is defined as the return back of the goods by the buyer to the seller from where the goods were initially purchased.
- Based on entry in books of account:
The recording of return inwards is done in the books of account of the seller.
Whereas the recording of return outwards is done in the books of the account of the buyer.
The difference between return inwards and return outwards is explained based on the below factors:
- Based on definition:
Return inwards is defined as the receipt back of the goods by the seller which is originally sold to the buyer because of excess goods or defective goods.
While return outwards is defined as the return back of the goods by the buyer to the seller from where the goods were initially purchased.
- Based on entry in books of account:
The recording of return inwards is done in the books of account of the seller.
Whereas the recording of return outwards is done in the books of the account of the buyer.
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