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Hello sir,
From reading previous student questions I learned that sales ledger control account is the same as receivables control account.
So keeping this in mind when you need to find the balance and you have return inwards and outwards.
On the book return outwards is only shown in the payables control on debit but nothing on the receivables, does it go on the credit side or should it be ignored.
For return inwards on the book it says that return inwards does not count for payables control account but nothing is mentioned for receivables. Does it mean that it should be ignored as well or it goes on then debit side?Thank you for your time.
Returns outwards are returns going out of the company and are therefore returns to suppliers. They have nothing to do with receivables. Obviously if we debit payables (as we do) there has to be a credit entry, but this is to the returns outwards account or to purchases.
Returns inwards are returns coming into the company and are therefore returns from customers. That has nothing to do with payables.
Nowhere in bookkeeping can we simply ignore something – every transaction needs two entries!
Thank you for your reply, helped me understand what I was doing, things started making sense and was able to reason them out together with your lecture, thank you.
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