Accounting for IGCSE & O level - Accounting Procedures (Section 24 - No. 47)
In the purchases ledger, what is the accounting entry made when a business receives a credit note from a supplier?
Debit supplier's account, credit purchase returns.
Credit supplier's account, debit purchase returns.
Debit purchase returns account, credit supplier's account.
Credit supplier's account, debit cash
Explanation
When a credit note is received, the amount owed is reduced, so the supplier's account is debited, and purchase returns is credited.
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