Which document is prepared to inform the supplier that his account has been debited due to purchase returns? MCQ with Answer and Explanation

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Which document is prepared to inform the supplier that his account has been debited due to purchase returns?

A. Invoice

B. Debit Note

C. Credit Note

D. Cash Memo

Answer: Option B

Solution (By JKSSB Mock Tests)

A debit note is sent to the supplier indicating that their account has been debited (reduced) in our books due to returned goods.

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

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Question #1

In cost accounting, 'Cost Unit' means:

A. A group of costs

B. An expense head

C. A location where costs are incurred

D. A unit of product or service for which cost is ascertained

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Correct Answer: Option D

Explanation:
Cost unit is a quantitative unit of product or service for which costs are determined, e.g., per ton, per km.

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Question #2

In a three-column cash book, the discount columns are:

A. Transferred to suspense account

B. Totalled but not balanced

C. Ignored at month end

D. Balanced like cash columns

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Correct Answer: Option B

Explanation:
Discount Allowed and Discount Received are separate nominal accounts. Their columns are only totalled and posted directly to the respective ledger accounts.

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Question #3

The 'Nil-Rated Supply' under GST means:

A. Goods with 0% GST but ITC available

B. Zero-rated supplies

C. Goods with 0% GST and no ITC on inputs (exempt)

D. Non-taxable supplies

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Correct Answer: Option C

Explanation:
Nil-rated supplies are taxed at 0% but no input tax credit is available. Exempt supplies also fall here. Zero-rated (export) allows ITC.

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

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