PRC-1 · Chapter 3 · Question 15 of 100
Which of the following pairs of account balances will normally appear on the exact same side (either both debit or both credit) of a Trial Balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Purchases and Sales Returns
Explanation
Purchases are an expense (Debit balance). Sales Returns (Return Inwards) reduce income and also carry a Debit balance. Therefore, both appear on the debit column of the trial balance.
More Ledgers and Trial Balance MCQs
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