PRC-1 · Chapter 2 · Question 82 of 100
A business receives a 'Credit Note' from a supplier indicating a Rs. 5,000 reduction in liability due to a minor defect in the goods kept by the business. Which book of prime entry records this document?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Purchases Returns Day Book
Explanation
The Purchases Returns Day Book (Returns Outwards Journal) records all credit notes received from suppliers relating to the return of inventory or allowances granted for defective goods.
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