Read the following hypothetical Case Study and answer the given questions:The accountant of M/s Rakhi Enterprises wrote the following balance on 31st March 2019. She wants to prepare the final accounts, but she has certain doubts in her mind.Q. The Returns Inwards will be recorded in ______________.a)Debit side of the Trading Account.b)Credit side of the Trading Account.c)Added to Purchases in the debit side of the Trading Account.d)Subtracted from Sales in the credit side of the Trading Account.Correct answer is option 'D'. Can you explain this answer?

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Read the following hypothetical Case Study and answer the given questions:

The accountant of M/s Rakhi Enterprises wrote the following balance on 31st March 2019. She wants to prepare the final accounts, but she has certain doubts in her mind.

Q. The Returns Inwards will be recorded in ______________.

a)
Debit side of the Trading Account.
b)
Credit side of the Trading Account.
c)
Added to Purchases in the debit side of the Trading Account.
d)
Subtracted from Sales in the credit side of the Trading Account.

Correct answer is option 'D'. Can you explain this answer?

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Read the following hypothetical Case Study and answer the given quest...

Returns Inwards are items returned TO the company, leading to a reduction (Cr) in Receivable or Cash and an Increase (Dr) in a Returns Inwards Account( which is not an income account – on the Statement of profit or loss it is subtracted from sales (sales is a credit balance).

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Read the following hypothetical Case Study and answer the given questions:The accountant of M/s Rakhi Enterprises wrote the following balance on 31st March 2019. She wants to prepare the final accounts, but she has certain doubts in her mind.Q. The Returns Inwards will be recorded in ______________.a)Debit side of the Trading Account.b)Credit side of the Trading Account.c)Added to Purchases in the debit side of the Trading Account.d)Subtracted from Sales in the credit side of the Trading Account.Correct answer is option 'D'. Can you explain this answer?

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