Return Outwards vs Return Inwards

Return Outwards vs Return Inwards


Return Outwards:

Faulty or wrong goods that the business returns back to suppliers

Double Entry:

Debit: Suppliers (Liabilities)
Credit: Return Outwards

Explanation: when you return goods back to suppliers, the amount you owe them reduces as you do not have to pay for the wrong items. You will also have to open a new ledger account for return outwards.

Return Inwards:

Faulty or wrong goods that the customers return back to the business

Double Entry:

Debit: Return Inwards
Credit: Debtors (Assets)

Explanation: when customers return goods to you, the amount they owe you reduces. A new ledger account for return inwards also have to be opened.


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14 Responses to Return Outwards vs Return Inwards

  1. Kenn says:

    Is it true to say that we debit the supplier in return outwards bcoz of the loss incured?

  2. saurabh says:

    good explanation…….

  3. mugabo hekedeon says:

    i like your wonderful shu!just continue!!!!!!!

  4. charlene says:

    thank u nw i knw wat returns inwards nd outwards are

  5. Suleiman aliyu Ruganges jss2B says:

    Woow that good thank u very much

  6. khadence says:

    nyce ans

  7. sophie ngetich says:

    return inwards reduces the amount owed by customers

  8. chi says:

    explain how the double entry applies

  9. yolo says:

    Really informative. Thanks!

  10. rebecca matthews says:

    i was trying to find out how to find the return inward so this does not pertain to me, and i still am not sure how to get it

  11. Ayub AbdiWahid says:

    really i benifited from this post i have been asked in the exam after i read it. tnx.

  12. lulu says:

    Very clear explanation!

  13. Khaleel says:

    Its true


    I accept on the given explanations, but more examples are required to easier reader’s understanding.

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