Concept:A returns outwards journal records goods that a business sends back to its suppliers.
Explanation:The total of the returns outwards journal is the total value of purchases returned during the accounting period.
This total is posted to the general ledger at the end of the period.
The double entry for returns outwards is simple.
First, debit each supplier's individual account in the creditors ledger.
Second, credit the returns outwards account in the general ledger.
This means the total of the returns outwards journal is transferred to the credit side of the returns outwards account.
Returns outwards are treated as a reduction of purchases.
Therefore, crediting the returns outwards account correctly reduces the total purchases figure in the trading account.
The debit side of the returns outwards account would record other entries, not the total from the journal.
Answer:D. Credit side of the returns outwards account.