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WAEC Financial Accounting 2021 Question 9

Question 9

Double Entry and the Ledger

Goods returned to the supplier is recorded in the accounts as: debit

  1. A.Sales Returns Account; credit Suppliers' Account.
  2. B.Purchases Returns Account; credit Supplier's Account.
  3. C.Supplier's Account; credit Purchases Returns Account.
  4. D.Supplier's Account; credit Purchases Account.
Show the answer and explanation

Answer: C (Supplier's Account; credit Purchases Returns Account.)

Explanation

The supplier is owed less (debit supplier) and returns outwards are credited.