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• # 72897
• Sun 10 Jul 2011 08:48 PM

Hi I am studying level 2 and am bit confused by one of my assignments. I have to do a Trading ,Profit and Loss Account, I have been given the Trial balance and am unsure about the entry Returns inwards and Returns outwards. Is Returns inwards meaning Sales returns? and Returns outwards Puchase returns? I think I am getting confused because there are also Carriage inwards which I understand is basically Purchases buying in and Carriage outwards is Sales sending out.Any advice appreciated thanks,

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• # 72899
• Sun 10 Jul 2011 10:43 PM

Hi,

• Carriage inwards are carriage cost incurred while purchasing materials/stock
• Carriage outwards is carriage charged on goods sold to customers
• Returns inwards are returned goods to suppliers
• Returns outwards are goods returned by customers

• Provide bookkeeping and virtual accountancy assistance service in English and French @nckaccountancy.
  West Essex Twitter:http://nckaccountancy.co.uk
  E-mail: info@nckaccountancy.co.uk
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• # 72900
• Sun 10 Jul 2011 11:20 PM

hie ,

A little clarity.

RETURNS INWARDS are goods sold on credit to a customer and returned for some reason to be refunded for (Sales returns).

RETURNS OUTWARDS are goods bought on credit from a supplier and returned for some reason to be refunded for (Purchases returns).


I hope this makes it clear


Sonny

• Sonny

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• # 72903
• Mon 11 Jul 2011 10:14 AM

nckbooks said:

“Hi,

• Carriage inwards are carriage cost incurred while purchasing materials/stock
• Carriage outwards is carriage charged on goods sold to customers
• Returns inwards are returned goods to suppliers
• Returns outwards are goods returned by customers

Hope this help,

Nathaliexxx”

• Provide bookkeeping and virtual accountancy assistance service in English and French @nckaccountancy.
  West Essex Twitter:http://nckaccountancy.co.uk
  E-mail: info@nckaccountancy.co.uk
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• # 72920
• Mon 11 Jul 2011 05:52 PM

Thank you both, its a lot clearer to me now :-)

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