Question

Rohan has returned goods worth Rs20,000 to Radheyshyam as he found it defective.Which document will be prepared by Radheyshyam?

a. Invoice/Bill
b. Debit note
c. Credit Note
d. Credit Voucher

Answer 1

Radheyshyam will prepare a credit note when Rohan returns defective goods worth Rs20,000, acknowledging the return and adjusting their accounts.

Step-by-step explanation:

When Rohan returns goods worth Rs20,000 to Radheyshyam due to them being defective, Radheyshyam will prepare a credit note. A credit note is a document issued by a seller to a buyer. It acknowledges the return of goods and signifies that the seller has credited the buyer's account with the value of the returned goods, thereby reducing the amount that the buyer owes to the seller. This action effectively reverses part of a transaction, potentially after an invoice has already been issued and even paid.

Answer 2

Radheyshyam would prepare a credit note to document the return of defective goods from Rohan.

Step-by-step explanation:

When returning defective goods, Radheyshyam would prepare a credit note to document the return. A credit note is a document issued by a seller to a buyer, indicating that the buyer has returned goods and the seller is crediting the buyer's account for the value of the returned goods. It serves as a record of the transaction and provides evidence for a reduction in the buyer's accounts payable to the seller.

A credit note typically includes information such as the customer's name, date of the return, the reason for the return, and the original invoice number. It also includes details of the quantity, description, and the value of the goods being returned. The credit note acts as a credit memo that reduces the amount owed by the buyer and helps to maintain accurate accounting records.