PRC-1 · Chapter 2 · Question 75 of 100
'Neon Signs' receives an invoice from a supplier that also clearly shows an error in arithmetic, undercharging them by Rs. 5,000. Once communicating this, what document will the supplier send?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A debit note acting as a supplementary invoice
Explanation
If a supplier has undercharged, they need to increase the customer’s debt. They do this by issuing a debit note (sometimes acting practically as an additional supplementary invoice).
More Books of Prime Entry MCQs
- Q77When 'Gamma Traders' receives its monthly bank statement, the accountant uses it to update the internal records. Which book of prime entry…
- Q78What is the primary function of a 'Delivery Note' accompanied with goods sent to a customer?
- Q79'Delta Construction' uses a two-column cash book. A debtor pays a Rs. 100,000 balance using a bank transfer. How is this recorded?
- Q80If 'Lunar Industries' discovers an error where the purchase of a motor vehicle was wrongly entered into the Purchases Day Book, how is…
- Q81Which column in a three-column cash book does NOT form part of the formal double-entry system but acts only as a memorandum?