what is the difference between inword and ouword returns of cheques?

Question

In the Banks Statement.What is the effect of that ones.

Answer 1

I'm not familiar with these terms, but I think that these are all returned cheques (bounced cheques) due to lack of funds. An inward returned cheque would be a cheque you wrote and issued to your supplier which bounced and has been returned to your bank. Originally this would have appeared as a withdrawal in the bank statement, but upon bouncing, the cheque would appear as a deposit to cancel out the original entry.
An outward returned cheque would be a cheque you received from your customer which bounced and you've to return to your customer's bank. Originally this would have appeared as a deposit in the bank statement, but upon bouncing, the cheque would appear as a withdrawal to cancel out the original entry.