Question

Debit note is the basis for recording a transaction in which of the following journals?

• A. General journal.
• B. Cash journal.
• C. Purchase journal.
• D. Purchase return journal.

Answer 1

The correct option is D Purchase return journal.

Debit note acts as a source document to the purchase return journal. It is an evidence for the occurrence of a reduction in expenses. When a purchaser returns goods to supplier which he had earlier purchased, he will at the time of returning goods is required to send debit note to seller or supplier of goods.