The Total solution for NCERT class 6-12
Basis of Comparison
Return Inwards
Return Outwards
Meaning
Goods returned to business by their customers
Goods purchased by business are returned to the suppliers.
Balance
It has debit balance.
It has credit balance.
Treatment
Deducted from Sales in the Trading Account.
Deducted from Purchases in the Trading Account.
Issued
Credit note is prepared by the seller.
Debit note is prepared by the buyer.
Reduction
Reduces the payment from the Debtors.
Reduces the payment made to the Creditors.
Term
It is also known as Sales Returns.
It is also known as Purchases Returns.