Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 41)
What is the effect of a supplier issuing a credit note for a purchase return?
Increase the balance in the purchases ledger.
Decrease the balance in the purchases ledger.
No effect on the balance in the purchases ledger.
The balance is replaced.
Explanation
The balance decreases because the business is owed less.
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