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
- carriage outwards
- carriage inwards
- returns outwards
-
returns inwards
The correct answer is: D
Explanation
The 4,000 represent returns inwards in the trading account. Return inwards is also known as sales returns.