Explain in brief any six documents used in internal trade.
Explain in brief any six documents used in internal trade.
Six documents used in internal trade are :
(i) Performa Invoice : Performa invoice is a statement sent by a seller containing detailed information regarding price, quality, grade, size, weight and all other relevant details about the product. It is a confirmed purchase order containing the terms and conditions on which buyer and seller agrees on the product details and mode of payment.
(ii) Commercial Invoice: An invoice is a statement sent in case of credit purchase by the seller to the buyer stating therein the particulars of goods purchased. It is an evidence of contract between buyer and seller stating description of goods, quantity, price, total value and so on.
(iii) Debit Note : Debit note is a note sent by one party to another informing the other party that his account is debited in the sender's book. It is a form or letter issued by seller to advice the amount owned by buyer, an invoice is a kind of debit note.
(iv) Credit Note : Credit note is a note sent by one party to another informing the other party that his account is credited in the sender's book. It is a monetary instrument issued by seller that allows a buyer to purchase any item or service on a future date.
(v) Lorry Receipt (LR): It is a receipt issued by the transport company to the consignor of goods, undertaking to carry the goods on lorry to the place of destination and deliver the same as per instruction of the consignor. When goods are despatched through roadways then lorry receipt is issued by the transporter.
(vi) Railway Receipt (RR): It is a receipt issued by the railway authorities to the consignor of goods, undertaking to carry the goods from the booking station to the destination and deliver the same as per instructions of the consignor.
Six documents used in internal trade are :
(i) Performa Invoice : Performa invoice is a statement sent by a seller containing detailed information regarding price, quality, grade, size, weight and all other relevant details about the product. It is a confirmed purchase order containing the terms and conditions on which buyer and seller agrees on the product details and mode of payment.
(ii) Commercial Invoice: An invoice is a statement sent in case of credit purchase by the seller to the buyer stating therein the particulars of goods purchased. It is an evidence of contract between buyer and seller stating description of goods, quantity, price, total value and so on.
(iii) Debit Note : Debit note is a note sent by one party to another informing the other party that his account is debited in the sender's book. It is a form or letter issued by seller to advice the amount owned by buyer, an invoice is a kind of debit note.
(iv) Credit Note : Credit note is a note sent by one party to another informing the other party that his account is credited in the sender's book. It is a monetary instrument issued by seller that allows a buyer to purchase any item or service on a future date.
(v) Lorry Receipt (LR): It is a receipt issued by the transport company to the consignor of goods, undertaking to carry the goods on lorry to the place of destination and deliver the same as per instruction of the consignor. When goods are despatched through roadways then lorry receipt is issued by the transporter.
(vi) Railway Receipt (RR): It is a receipt issued by the railway authorities to the consignor of goods, undertaking to carry the goods from the booking station to the destination and deliver the same as per instructions of the consignor.
