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

A debit note is prepared for:
A. Purchase returns
B. Credit sales
C. Sales returns
D. Credit purchases
Answer: Option A
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
A: A Real Account is never closed at the end of the accounting year. R: Real accounts represent assets and properties of the business. Choose the correct option.
A. A is true but R is false
B. A is false but R is true
C. Both A and R are true but R is NOT the correct explanation of A
D. Both A and R are true and R is the correct explanation of A

Correct Answer: Option D


Explanation:
Real accounts represent assets, which carry forward their balances to the next year because they represent ongoing resources of the business. R correctly explains why they are permanent and never closed.

Question #2
Under the Companies Act 2013, the 'Independent Directors' must hold a special training as per Section 149. Who is exempted from this training requirement?
A. A person who has already undergone the training or is a whole-time director in a listed company
B. No one is exempted
C. A qualified Chartered Accountant or Company Secretary
D. A person who has been a director for more than 10 years

Correct Answer: Option A


Explanation:
The Companies Act exempts individuals who have already undergone the prescribed independent director training, or those who are already serving as whole-time directors in listed companies, from the mandatory training requirement.

Question #3
Which of the following books is known as the 'Principal Book' of accounts?
A. Cash Book
B. Journal
C. Trial Balance
D. Ledger

Correct Answer: Option D


Explanation:
The ledger is the principal or chief book of accounts because all financial data is ultimately classified and summarized there.