0
Yes, purchases returns should be included in the profit and loss account as they reduce the total cost of goods sold. When goods are returned, the value of those returns is deducted from the total purchases, thereby affecting the gross profit calculation. This adjustment helps provide a more accurate representation of the company's profitability during the accounting period.
What else can I help you with?
Nature of account of purchases return?
i think it should be treated as an ""Expense""
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
Less sales return in trading Profit loss account?
yes, SALES-SALES RETURNS- COST OF GOODS SOLD
Is return inward a current asset?
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
Nature of account of purchases return?
i think it should be treated as an ""Expense""
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
Structure of profit and loss account?
$ $ $ sales return inwards lcogs opening stock purchase return outwards etc
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
Can you explain what the rate of return means on a 401k account?
The rate of return on a 401k account is the percentage of profit or loss that your investments have earned over a specific period of time. It shows how well your money is growing within your retirement account.
Can you explain what the rate of return means for a 401k account?
The rate of return for a 401k account is the percentage of profit or loss on the investments in the account over a specific period of time. It shows how well the investments are performing and can help determine the growth of the account over time.
Less sales return in trading Profit loss account?
yes, SALES-SALES RETURNS- COST OF GOODS SOLD
Is return inward a current asset?
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
What's the double entry when you buy stock?
First Answer : Debit an account called investments and credit an account called Cash (or a payable) Second Answer : The first answer is referring to buying of Stocks (as in Shares like those listed on a Stock Exchange). If you are thinking of stock such as raw materials of a business or stock for resale (- e.g. an electrical appliance store purchases TVs for resale therefore the TV is their stock) than there is actually NO DOUBLE ENTRY because there is NO SUCH THING as a STOCK ACCOUNT. Stock is recorded using a physical record in and out. This gives rise to different stock valuation methods (FIFO, LIFO, AVERAGE). Why is there no STOCK ACCOUNT in double-entry? Because you buy something for say £10, you will want to sell it for a higher price, say £15 to make a profit. If you have a Stock Account, it will not balance. So how is "stock" recorded in your standard double-entry system? "Stock" is actually recorded using 4 accounts:- Increase in Stock Purchases A/C Return Inwards A/C Decrease in Stock Sales A/C Return Outwards A/C The balancing is done at the year end through your Profit and Loss A/C. The difference is your "Profit or Loss".
What is a profit earned by a investor?
A Return
What is purchases return and the double entry?
Purchase return - this is the outward return by the firm While double entry is when you have entered the transaction twice
