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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Trial Balance
Hi Sir,
Why is return inwards a debit on the trial balance?
When we sell goods, we Dr Receivables and Cr Sales – the customer owes us money and we have income.
When a customer returns goods, we Cr Receivables and Dr Returns Inwards – the customer owes us less money and we have less income (the Returns Inwards will be subtracted from the Sales when we prepare the SOPL).
Thank you!
You are welcome 🙂