BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Returns outwards are goods returned by the customer to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.

Detailed explanation-2: -Goods which we purchased on credit if returns back it is called return outwards(Purchase return) where as goods which we have sold and returned by the customer is called return inwards(Sales Return)

Detailed explanation-3: -A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns. In other words, it is the journal which is used to record the goods which are returned to the suppliers.

Detailed explanation-4: -Return Outward The transaction is done after goods are received at the seller’s end. Hence, it is recorded when goods are being returned from the buyer. Return outward is initiated first as the buyer returns the goods and raises a credit note for its customers.

Detailed explanation-5: -The customer can mark transactions as a debit against accounts payable and credit to purchase inventory to return the goods inwards. In contrast, return outward refers to directly returning the products from the customer base to suppliers. So the return outward comprises two credit and debit transactions.