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Trial Balance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Trial Balance

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 11, 2019 at 9:42 pm #520242
    ks13
    Participant
    • Topics: 18
    • Replies: 15
    • ☆

    Hi Sir,

    Why is return inwards a debit on the trial balance?

    June 12, 2019 at 4:58 am #520250
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    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).

    June 12, 2019 at 10:52 am #520281
    ks13
    Participant
    • Topics: 18
    • Replies: 15
    • ☆

    Thank you!

    June 12, 2019 at 4:06 pm #520325
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Trial Balance’ is closed to new replies.

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