A. returns outwards
B. carriage outwards
C. returns inwards
D. carriage inwards
Correct Answer:
Option A – returns outwards
Explanation
The rule of a trial balance is :
– debit all expenses and assets
– credit all income and gain and liabilities
Returns outwards is the total value of goods returned to suppliers out of the goods bought and it is also known as purchases returns. Therefore, returns outwards will be credited to the trial balance.