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
both carriage inwards and carriage outwards or debited in the trial balance
Return Inwards are cheques that are rejected for any reason by the payee Bank. There can be a number of reasons for return inwards, like insufficient balance in the Debit Account, Account not present, Payee Signature invalid etc.
Debit Carriage inward expenseCredit Bank (if paid in cash/bank)orCredit Accounts Payable (if accrual)
Debit account
Return Inwards in accounting means SALES that was returned in your business by your customers maybe because there's something wrong or the customer is not satisfied with the product. SALES is your revenue and is credit in nature. RETURN INWARDS / SALES RETURN is the opposite of SALES, therefore, it's an expense and is debit in nature.
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
both carriage inwards and carriage outwards or debited in the trial balance
[Debit] Sales return [Credit] Cash /bank [Debit] Sales [Credit] Sales return
Return Inwards are cheques that are rejected for any reason by the payee Bank. There can be a number of reasons for return inwards, like insufficient balance in the Debit Account, Account not present, Payee Signature invalid etc.
Debit Carriage inward expenseCredit Bank (if paid in cash/bank)orCredit Accounts Payable (if accrual)
Debit account
[Debit] sales return [credit] cash / bank
[Debit] Sales returns [Credit] Cash / bank [debit] Sales revenue [credit] sales return
[Debit] Sales Return [Credit] Accounts receivable / Cash
[Debit] Sales Return account [Credit] Cash account
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