Which of the following account has a Credit Balance ?

Correct option is D

The correct answer is (d) Return Outward

Explanation:
• Return Outward (or Purchase Return) reduces the total purchases made.
• It appears on the credit side of the Trial Balance because it decreases expenses (purchases).
• Shown on the credit side of the Trading Account.

Information Booster:
• Return Inward (Sales Return) has a debit balance as it reduces sales.
• Carriage Inward is a direct expense shown on the debit side of the Trading Account.
• Carriage Outward is an indirect expense shown on the debit side of the Profit & Loss Account.
• Return Outward decreases the liability towards suppliers.
• It affects the overall cost of goods purchased.