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What is the treatment of sales returns in the Trading Account?
  • a)
    Deducted from the sales on the credit side
  • b)
    Added to the sales on the credit side
  • c)
    Deducted from the purchases on the debit side
  • d)
    Added to the closing stock on the credit side
Correct answer is option 'A'. Can you explain this answer?
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What is the treatment of sales returns in the Trading Account?a)Deduct...
Sales returns are deducted from the total sales on the credit side of the Trading Account to reflect the net sales.
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What is the treatment of sales returns in the Trading Account?a)Deducted from the sales on the credit sideb)Added to the sales on the credit sidec)Deducted from the purchases on the debit sided)Added to the closing stock on the credit sideCorrect answer is option 'A'. Can you explain this answer?
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