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?

  1. A.Debit Note
  2. B.Credit NoteCorrect answer
  3. C.Invoice
  4. 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.

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