JAMB Commerce 2014 Objective — Question 14

Question 14 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2014 Objective paper, with the correct answer and a full explanation.

A carton of noodles valued at #2,000 was invoiced at #200 only. The accounting procedure to correct this error is to issue

A. an invoice for #2,000
B. a debit note #2,000
C. a credit note #1,800
D. a debit note #1,800Correct

Explanation

Debit note shows the current debt obligation — the shortfall of #1,800 needs a debit note to correct the under-invoicing.

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