AS Level Accounting question?

Question

Why does the month total go on the debit side of the account for return inwards? Surely it would go on the credit side, as the company will have to spend money paying out, to reimburse the customer? Thanks

Answer 1

as you just said the company will pay out... so when u are paying u are debiting ur side...

Answer 2

return inwards are the sales returns. while booking the sales entry you would credit the sales account and debit the cash or customer a/c. while the sales are returned the entry should be reversed.