Mr. Ram has sent an invoice for Rs. 11,000 to a customer. The customer then calls Mr.Ram and asks for a discount of Rs.1,000 and to make a net invoice amount of Rs.10,000. Mr.Ram agrees to this in good faith and then issues ____________ to the customer to adjust for the given discount.

Debit note of Rs.1,000

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Duplicate Invoice of Rs.10,000

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Credit note of Rs.1,000

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Invoice of Rs.11,000

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Solution

The correct option is C Credit note of Rs.1,000
A credit note is given by the seller to the buyer to cancel the extra debit in the account. A credit note provides an extra credit to the customer. In this case Mr. Ram is cancelling the extra debit by providing a credit note to the customer.

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Similar questions

Record the following transactions in Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book of Tushar General Stores for the month of May 2011.

2011 May
1	Jaya invoiced goods of Rs 15,000 at 9% trade discount as per their Invoice number 231.
3	Purchased computer from IBM Computers worth Rs 55,000 as per their Invoice number 863.
4	Invoiced goods to Priya for Rs 20,000 at 4̳½ % trade discount as per Invoice number 341.
7	Sold goods to Sneha for Rs 14,500 at 10% trade discount as per Invoice number 342.
12	Priya returned goods worth Rs 3,500 for which we issued Credit Note Not 78. (Gross).
15	Goods worth Rs 3,500 returned to Jaya and issued Debit Note No. 94.
17	Sold a part of old machinery to Vipin on credit for Rs 29,800.
20	Sold goods to Anita for Rs 26,650 as per Invoice number 343 and purchased goods from her for Rs 12,250 as per their Invoice number 545.
22	Kailas Traders purchased goods from us Rs 16,000 at 6% trade discount as per the Invoice number 344.
24	Satya supplied goods to us of Rs 2,450 Invoice number 630.
27	Kails Traders returned goods to us of Rs 5,180 (Net) and we issued a Credit Note No. 79.
29	Returned goods worth Rs 460 to Satya and issued Debit Note No. 95.

Q. M/s Beauty Products paid 18% GST on cosmetics worth Rs 6000 and sold to a customer for Rs 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued ?

Q. Aditi Enterprises purchased stationery for Rs.

8, 000

and sold it to customer for Rs.

12, 000

. Find M-VAT paid at the rate of

12 %

by invoice method.

Q. A particular shop sells goods at cost. A person buys goods worth Rs.60 from the shop and gives the shopkeeper a Rs.100 note. As the shopkeeper does not have change to give his customer, he exchanges this Rs.100 note for 6 Rs.10 notes and 2 Rs. 20 notes from the bank to settle accounts with the customer. The next day, the banker returns the Rs.100 note claiming it to be a counterfeit and takes two Rs.50 notes from the shopkeeper. If the note was actually a counterfeit, what is the total loss to the shopkeeper?

Q. account is debited while recording the entry for bad debts of Mr. Ram amounting to Rs.10,000.

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Mr. Ram has sent an invoice for Rs. 11,000 to a customer. The customer then calls Mr.Ram and asks for a discount of Rs.1,000 and to make a net invoice amount of Rs.10,000. Mr.Ram agrees to this in good faith and then issues ____________ to the customer to adjust for the given discount.

The correct option is C Credit note of Rs.1,000A credit note is given by the seller to the buyer to cancel the extra debit in the account. A credit note provides an extra credit to the customer. In this case Mr. Ram is cancelling the extra debit by providing a credit note to the customer.

The correct option is C Credit note of Rs.1,000
A credit note is given by the seller to the buyer to cancel the extra debit in the account. A credit note provides an extra credit to the customer. In this case Mr. Ram is cancelling the extra debit by providing a credit note to the customer.