PRC-1 · Chapter 2 · Question 44 of 100
'Pioneer Manufacturing' sends a 'Goods Dispatched Note' (GDN) to a customer along with a delivery of products. What is the accounting significance of this GDN in the books of prime entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It serves only as a logistical notice and does not trigger an entry until the sales invoice is issued.
Explanation
A GDN is a supporting document proving delivery. It does not act as a source document for the books of prime entry; the actual recording in the sales day book waits for the formal sales invoice to be generated.
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