PRC-1 · Chapter 2 · Question 46 of 100
A supplier sends a 'Statement of Account' to 'Nimbus Traders' at the end of the month showing a total balance due of Rs. 120,000. How should 'Nimbus Traders' record this document in its books of prime entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is not recorded in any book of prime entry; it is only used to check and reconcile the ledger balance.
Explanation
A statement of account is merely a summary of invoices, payments, and credit notes that have already occurred. It is a reconciliation tool, not a source document for new prime entries.
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