Question

A returns inward book is kept to record ______.
1. Return of anything sold
2. Return of anything purchased
3. Return of goods sold
4. Return of goods purchased

Answer 1

Correct Answer - Option 3 : Return of goods sold

A returns inward book is kept to record the Return of goods sold.

• Return Inward - For a business entity, return inward means a customer returning the goods which were sold to him/her.
• Return Outward - For a business entity, return outward means a business entity is returning the goods to the supplier which were purchased by it.
• Return Inward Book - Return inward book is a journal subsidiary that keeps track of returns of goods sold on credit.
• Return Outward Book - Return outward book is a journal subsidiary that keeps track of returns of goods purchased on credit.

• Goods - Goods are those physical products in a business entity in which it trades.
• Return of anything purchased or sold is recorded in journal proper. 
• All miscellaneous credit transactions are documented in the journal proper, which is a book of original entries.