Difference Between Carriage Inwards And Carriage Outwards In The Income Statement
Return Inwards: |
Accounting Treatment:
Debit: Return Inwards Account Credit: Customer’s Account
In the Income Statement: Sales XXX Less: Return inwards (x) Net Sales YYY
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Return Outwards: |
Accounting Treatment: Debit: Creditor Account Credit: Return Outwards A/c
The Return Outward a/c will be debited to the Purchases account to reduce the amount as lesser value of goods are received as a result of the return of goods to the suppliers.
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