SFP AND SPL Considerations

Question 1

Wha is the difference between return in and return out?
Outline their persepective entries

Answer 1

Return in = sales return (debit entry)
Return out = purchase return (credit entry)

Question 2

___________ - ______________ = gross profit

Answer 2

Purchase - closing inventory = gross profit

Question 3

A. Return inwards is found in which account
B. Return inwards is found in what position in this account

Answer 3

Statement of profit or loss

Right underneath sales

Question 4

A. Return out is found in which account
B. Return out is found in what position in this account

Answer 4

Statement of profit or loss

LessCostofGoods sold
Underneath purchases

Question 5

Define carriage inwards

Outline the statement carriage inwards can be found

Answer 5

Amount the company paid for delivery

Statement of p o L

In cost of goods sale