CIMA BA3 · Chapter 4 · Question 2 of 10
Goods bought on credit are returned to the supplier because they are faulty. In which book of prime entry is the credit note received first recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Purchase returns day book
Explanation
Credit notes received from suppliers for goods returned are recorded in the purchase returns (returns outwards) day book. The sales returns day book records credit notes issued to customers.
More Books of prime entry and sales tax MCQs
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- Q8Which of the following is often used as both a book of prime entry and part of the double entry system?