A debit note is prepared for: MCQ with Answer and Explanation

A debit note is prepared for:
A. Sales returns
B. Credit sales
C. Purchase returns
D. Credit purchases
Answer: Option C
Solution (By JKSSB Mock Tests)
A debit note is issued to a supplier when goods are returned, indicating that the supplier's account is debited.

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Practice More Accountancy and Book Keeping Questions

Question #1
'Calls-in-Arrears' is shown in Balance Sheet by:
A. Separate liability
B. Contingent liability
C. Adding to share capital
D. Deducting from called-up capital

Correct Answer: Option D


Explanation:
Calls-in-arrears is shown as deduction from called-up capital.

Question #2
S1: Cheques issued but not presented for payment increase the bank balance as per the pass book. S2: Direct deposit by a customer into the bank account decreases the cash book balance. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S2 only
D. S1 only

Correct Answer: Option A


Explanation:
Cheques issued but not presented decrease the pass book balance, not increase it. Direct deposit by a customer increases the pass book balance but has no immediate effect on the cash book until intimated. Both are incorrect.

Question #3
The 'Expected Credit Loss' model is used in:
A. AS 2
B. AS 10
C. AS 9
D. Ind AS 109

Correct Answer: Option D


Explanation:
Ind AS 109 introduces expected credit loss for impairment of financial assets.