WAEC - Accounts Principles Of Accounts (2022 - No. 41)
Use the following information to answer questions below
Trading Account of Umeh Enterprises for the year ended 31st December 2019
| GH⊄ | GH⊄ | ||
| Opening stock | 10000 | Sales | 200000 |
| Purchases | 120000 | Less: | (4000) |
| 130000 | 196000 | ||
| Closing stock | (22800) | ||
| Cost of goods sold | ----- | ||
| Gross profit | ------ | ||
| 196000 | 196000 |
The GH⊄ 4,000 on the credit side is
carriage outwards
carriage inwards
returns outwards
returns inwards
Explanation
The 4,000 represent returns inwards in the trading account. Return inwards is also known as sales returns.
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