Credit note is the basis for recording purchase return in the purchase return book.

True

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False

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Solution

The correct option is B False
A debit note is prepared when the goods are returned and is sent to the supplier with the returned goods. An original copy is sent to the supplier and on the basis of duplicate copy the transaction is recorded in the purchase return book. debit note informs supplier about the amount for which his account has been debited on account of returned goods. Thus, a debit note is required for recording the transactions in the purchase return book and not credit note is used to record the transaction related to sales returned.

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Similar questions

Rectify the following errors.

(a) Credit Sales to Mohan Rs. 7,000 were recorded in purchase book.

(b) Credit Purchase from Rohan Rs. 9,000 were recorded in the sales book.

(d) Goods returned from Mahesh Rs. 1,000 were recorded in purchase return book.

Rectify the following errors:

(a)	Credit Sales to Mohan Rs 7,000 were recorded in purchases book.
(b)	Credit Purchases from Rohan Rs 900 were recorded in sales book.
(c)	Goods returned to Rakesh Rs 4,000 were recorded in the sales return book.
(d)	Goods returned from Mahesh Rs 1,000 were recorded in purchases return book.
(e)	Goods returned from Nahesh Rs 2,000 were recorded in purchases book.

Rectify the following errors.

(i) Credit purchase from Rohan Rs. 9,000 were recorded in sales book.

(ii) Goods returned to Rakesh Rs. 4,000 were recorded in the sales return book.

(iii) Good returned from Mahesh Rs. 1,000 were recorded in purchases return book.

(iv) Goods returned from Mahesh Rs. 2,000 were recorded in purchases book.

Pass necessary Journal entries' to rectify the following errors:

(i) Goods returned to Mahima for Rs 5,000, entered into Sales Returns Book.

(ii) Kajol returned goods worth Rs 2,000, entered into Purchase Returns Book.

(iii) A credit purchase of Rs 3,000 from Ravina was recorded through Purchase Returns Book.

(iv) Goods worth Rs 1,160 returned to Karishma, were recorded in Purchase Book as Rs 1,106.

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