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WAEC Financial Accounting 2015 Question 6

Question 6

Double Entry and the Ledger

Goods returned to a supplier is

  1. A.debited to Returns Outwards Account.
  2. B.credited to Returns Outwards Account.
  3. C.debited to Returns Inwards Account.
  4. D.credited to Returns Inwards Account.
Show the answer and explanation

Answer: B (credited to Returns Outwards Account.)

Explanation

Goods sent back to a supplier are returns outwards; that account is credited (the supplier is debited).