Use the following information to answer questions below Trading Account of Umeh Enterprises for the year ended 31st December 2019
GH⊄ GH⊄
Opening stock 10000 Sales 200000
Purchases 120000 Less: (4000)
130000 196000
Closing stock (22800)
Cost of goods sold -----
Gross profit ------
196000 196000
The GH⊄ 4,000 on the credit side is
  • A carriage outwards
  • B carriage inwards
  • C returns outwards
  • D returns inwards
waec 2022accounting

The correct answer is D. returns inwards

The 4,000 represent returns inwards in the trading account. Return inwards is also known as sales returns.

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