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Question
Return inward is deducted from purchases.
Solution
False
Explanation: Return inward implies goods that are returned by the customers of a firm. In other words, it can also be termed as sales return. Thus, return inward is deducted from the sales of the firm so as to ascertain the amount of net sales. However, Return outward is deducted from the amount of purchases.
shaalaa.com
Adjustments - Unrecorded Purchases and Sales
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