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Question

Explain any 3 documents used in internal trade.

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Solution

Three documents used in internal trade are :

(a) Proforma Invoice - This document is prepared and sent to the prospective customer by the seller to inform him about tha total amount he would have to pay for the specifed goods.

(b) Invoice - Is a document which shows the details of the transactions including the amount to be paid by the buyer for the goods bought in he transaction. An invoice includes the information like name, the address of buyer and the seller, serial number, date, quantity and description of goods, terms of payment, total amount payable errors and omissions expected.

(c) Lorry Receipt - Lorry is a truck or any other large motor vehicle which is used for transporting goods from one place to another through road. Lorry receipt is a document issued by a road transporter when goods to be transported are handed over by the consigner or the seller to the transporter.


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