Sales Return
Definition
Goods returned by a customer after a sale, reducing recorded revenue and, where tax applies, adjusting the tax charged — often through a credit note. Also called returns inward.
Related Terms in Core Accounting
Purchase Return
Goods a business returns to a supplier after purchase, reducing recorded purchases and the amount owed — often via a debit note. Also called returns outward.
Capital Work in Progress (CWIP)
Spending on fixed assets still under construction or not yet ready for use. It sits on the balance sheet as CWIP and is not depreciated until the asset is completed and put into service.
Deferred Revenue Expenditure
A large revenue expense whose benefit extends over several periods, written off gradually rather than all at once. The concept is used less under modern standards, which favour expensing or capitalising.
Trial Balance vs Balance Sheet
A trial balance is an internal list of all ledger balances used to check that debits equal credits; a balance sheet is a formal statement of assets, liabilities and equity at a point in time, prepared from those balances.
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