ExpertEasy2 marksMultiple Choice
ACCA · Question 07 · The Use of Double-Entry and Accounting Systems
A retail business receives a credit note from a supplier for goods returned due to damage. In which book of prime entry should the retail business record this document?
A retail business receives a credit note from a supplier for goods returned due to damage. In which book of prime entry should the retail business record this document?
Answer options:
A.
Sales returns day book
B.
Purchase day book
C.
Purchase returns day book
D.
Cash book
How to approach this question
Identify the transaction: returning goods to a supplier. Match this to the correct day book.
Full Answer
C.Purchase returns day book✓ Correct
When a business returns goods to a supplier, the supplier issues a credit note. The business records this credit note in its purchase returns day book (also known as the returns outwards journal).
Common mistakes
Confusing purchase returns with sales returns.
Practice the full ACCA FA — Financial Accounting Practice Exam 4
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