One of the items on the credit column of a trial balance is?

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.