Debit note is the basis for recording a transaction in which of the following journals?

Correct answer: D. Purchase return journalChoose Bookkeeping Software

  • A. General journal
  • B. Cash journal
  • C. Purchase journal
  • D. Purchase return journalChoose Bookkeeping Software

Explanation

A debit note is commonly issued by the buyer when goods are returned to the supplier, providing the basis for a purchase return entry. Thus it belongs in the purchase return journal.

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About Accounting Principles

Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

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