Question

Return Inward is deducted from purchases. (State True or False)

Answer 1

Heya mate

Its false because return inwards means sales return and it it is deducted from sales.

hope it helps

Answer 2

The statement return inward is deducted from the purchases is False.

• Return outwards are deducted from the purchases. Return Outward are the products returned to the Supplier by the consumer. If there is a defect in it, products can be returned. The transaction is recorded in the Trading account.
• Whereas, return inwards are the sales returns. Returns inward do not necessarily lead to a reduction in the cost of goods sold, as goods returned may not necessarily have been sold to third parties during the period of accounting.