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WAEC Financial Accounting 2014 Question 41

Question 41

Books of Original Entry

Which of the following information is recorded in the returns outwards book?

  1. A.Goods purchased on credit and subsequently returned to supplier
  2. B.Fixed asset bought on credit and subsequently returned to supplier
  3. C.Cash payment received from a customer and subsequently returned to supplier
  4. D.Goods sold to a customer and subsequently returned to the business
Show the answer and explanation

Answer: A (Goods purchased on credit and subsequently returned to supplier)

Explanation

The returns outwards book records goods bought on credit for resale that are sent back to suppliers.