Recording of Transactions – II · Class 11 · CBSE · Commerce Accountancy
What document is issued by the seller to the buyer when goods are returned by the buyer?
Practice question from Recording of Transactions – II (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-5DE8E8
What document is issued by the seller to the buyer when goods are returned by the buyer?
- A.Debit Note
- B.Credit NoteCorrect answer
- C.Invoice
- D.Cash Memo
Solution
When a buyer returns goods to the seller, the seller issues a Credit Note to the buyer, indicating that their account has been credited. Conversely, the buyer issues a Debit Note to the seller when returning goods.
More from Recording of Transactions – II
- Which of the following subsidiary books records all credit purchases of goods dealt in by the business?
- A cash book with cash, bank, and discount columns is known as:
- What is a contra entry in accounting, and in which book is it recorded?
- Which of the following transactions is recorded in the Journal Proper?
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