A credit note is prepared for __________ the account of the counterpart.

Debiting

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Crediting

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Nulifying

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Any of the above

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Solution

The correct option is C Crediting
A credit note is prepared for crediting the account of the counter part. A credit note is prepared when less credit is given or extra debit is given. It is issued by the supplier when the goods are returned by the buyer. It gives additional credit or cancels the excess credit by issuing a debit note.

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Similar questions

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