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

A debit note is prepared for:

A. Sales returns

B. Purchase returns

C. Credit purchases

D. Credit sales

Answer: Option B

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 Report Error

The gross profit ratio is 25%. If sales are ₹4,00,000, what is the cost of goods sold?

A. ₹3,00,000

B. ₹4,00,000

C. ₹5,00,000

D. ₹1,00,000

Correct Answer: Option A

Explanation:
Gross Profit = 25% of 4,00,000 = ₹1,00,000. COGS = Sales - Gross Profit = 4,00,000 - 1,00,000 = ₹3,00,000.

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

Question #2 Report Error

The 'Net Profit' is transferred to:

A. Drawings Account

B. Capital Account (or Retained Earnings)

C. Balance Sheet liability side

D. Trading Account

Correct Answer: Option B

Explanation:
Net profit is added to owner's capital or retained earnings.

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

Question #3 Report Error

The 'Permanent Account Number' (PAN) is issued by:

A. Income Tax Department

B. RBI

C. MCA

D. GSTN

Correct Answer: Option A

Explanation:
PAN is a unique identifier issued by the Income Tax Department.

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