UI Post-UTME Financial Accounting 2024 (Model questions) Question 2

Question 2

Books of Original Entry

A credit note from a supplier would first be entered in the

  1. A.purchase book
  2. B.sales book
  3. C.returns inward book
  4. D.returns outward
Show the answer and explanation

Answer: D (returns outward)

Explanation

A supplier sends a credit note when we return goods to him; such returns are recorded in the returns outward book.