Question

A debit note issued to a creditor for goods returned by us is to be recorded in the __________.

• A. bills receivable book
• B. purchases book
• C. journal proper (General Journal)
• D. purchases return book

Answer 1

The correct option is D purchases return book

When goods are returned, a debit note is prepared and is sent to the supplier with the returned goods. An original copy is sent to the supplier, informing him of the amount for which his account has been debited on account of the returned goods. A duplicate copy of the debit note becomes the source document, on the source document, on the basis of which entries are recorded in the Purchases Returned Book. Thus, a debit note is required for recording the transactions in the Purchases Return Book.