Which of the following business documents is a proof of payment for a business transaction?

Question

Which of the following business documents is a proof of payment for a business transaction?

1. A. Receipt (Correct answer)
2. B. Invoice
3. C. Debit note
4. D. None of the above

Correct Answer

Option A — Receipt

Detailed Solution & Explanation

The correct answer is Receipt.

Key Points

• A Receipt is a document issued as proof that payment has been received for a business transaction.
• An Invoice is a demand for payment; a Debit Note records a return or adjustment.

Additional Information

• Distinguish the documents: an invoice demands payment, a receipt acknowledges payment made, a debit note records a reduction owed to a supplier (as on a purchase return), and a credit note records an amount owed back to a customer (as on a sales return).
• A voucher is the internal record supporting the entry; a cash memo covers an immediate cash sale.
• A receipt is the buyer's proof of payment and the seller's acknowledgement, which is why it settles disputes over whether money changed hands.
• In GST practice the tax invoice carries prescribed particulars including GSTIN, HSN code and the tax split.