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Use the following information to answer questions below Trading Account of Umeh Enterprises for the...

Accounts - Principles of Accounts
WAEC 2022

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
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Correct Answer: Option D
Explanation

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


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