- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
What effect does return outward and return inward has on statement of financial Position and statement of profit or loss
Returns inwards reduce the sales figure in the SOPL. Returns outwards reduce the purchases figure in the SOPL. Neither of them have any affect on the SOFP (returns inwards will have reduced the receivables during the year, and returns outwards will have reduced the payables during the year, but the SOFP is showing the balances on receivables and payables as at the end of the year).
I explain both of these in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.