Question

Goods returned to Shyam for Rs.2,500, which account will be debited
a) Return Inward A/c
b) Return Outward A/c
c) Carriage Outward A/c
d) Shyam A/c​

Answer 1

Answer:

d) Shyam A/c

Explanation:

Given that the goods are returned to Shyam which were earlier purchased by us for Rs. 2,500.

Accounts involved in this transaction:

• Shyam's A/c
• Return outward (purchase return)

We were liable to pay Rs. 2,500 to Shyam and this liability decreases when we return the goods.

We know that liability on decease is credited.

Journal entry for this transaction will be:

Shyam's A/c . . . Dr - ₹2,500

‎ ‎ ‎To return outward A/c - ₹2,500

Hence the account which is debited is Shyam A/c