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

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A debit note is prepared for:

A. Sales returns

B. Credit purchases

C. Credit sales

D. Purchase returns

Answer: Option D

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.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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Which of the following statements regarding a Bank Reconciliation Statement (BRS) is TRUE?

A. It is prepared on a specific date to reconcile the balances.

B. It is a part of the double-entry system.

C. It is prepared by the bank manager.

D. It updates the cash book balances.

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Correct Answer: Option A

Explanation:
A BRS is prepared by the account holder (customer) on a specific date to explain differences between the cash book and pass book. It is a statement, not an account, so it does not involve journal entries.

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Question #2

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The 'Related Party Disclosures' standard is:

A. AS 21

B. AS 19

C. AS 18

D. AS 17

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Correct Answer: Option C

Explanation:
AS 18 requires disclosure of transactions with related parties.

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Question #3

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In the context of recent developments, Ind-AS 116 deals with:

A. Revenue from Contracts with Customers

B. Leases

C. Financial Instruments

D. Fair Value Measurement

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Correct Answer: Option B

Explanation:
Ind-AS 116 is the Indian Accounting Standard that deals with the recognition, measurement, presentation, and disclosure of leases.

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