Question

Debit and credit notes act as the authenticate proof for the ___________ by the purchasers or sellers.

• A. Goods purchased
• B. Goods sold
• C. Goods destroyed
• D. Goods returned

Answer 1

The correct option is D Goods returned

Debit and credit notes act as the authenticate proof for the goods returned by the purchasers or sellers. Debit and credit notes are issued to correct the issues of short debit or short credit given earlier. They give an advantage of not editing the books of original entry and still altering the accounts by either debiting or crediting the accounts so needed respectively.