Multiple choice

Goods sold on credit were returned by a customer and cash was given immediately. These are recorded in

  1. sales book

  2. sales return book

  3. sales return book & cash book

  4. journal proper
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When goods sold on credit are returned by a customer, this is recorded in the sales return book to track returns. However, when cash is immediately given in exchange for the returned goods, the cash payment must be recorded in the cash book as well. Both books are needed to capture the complete transaction - the return aspect and the immediate cash settlement.

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