Accounting documents for sales and adjustments

Steps:

• Sale of goods by Rajit to Balir requires an invoice from the seller.
• Rajit advising Balir of damaged goods prompts a credit note from the seller to reduce the invoice amount.
• Balir advising Rajit of a further reduction in the amount owing involves a debit note from the buyer to adjust the account.
• These three documents—invoices, credit notes, and debit notes—record the transaction and adjustments without needing receipts or statements.

Why D is correct:

• D lists invoice (for initial sale), debit note (buyer's reduction), and credit note (seller's damage allowance), matching standard accounting practices for trade adjustments.

Why the others are wrong:

• A omits the invoice and includes an unmentioned receipt.
• B omits the debit note and includes an unmentioned receipt.
• C omits the credit note and includes a periodic summary (statement) not indicated.

Final answer: D