Credit note and debit note
This query is : Resolved
17 September 2012
What do you mean by credit note or debit note and do we pass any accounting entry in tally?
20 September 2012
Hello,
Credit note is generally issues in following cases:
(1) an invoice amount is overstated,
(2) correct discount rate is not applied, (3) goods spoil within guaranty period, or (4) they do not meet the buyer's specifications and are returned. Also called credit memo and u can apply it vice versa for debit note.Accounting entry will be :
IN THE BOOKS OF SELLER :-
debit note :-
by party a/c debit ----xxx
to sales a/c--------------xxx
to vat a/c---------------xxx
credit note:-
BY SALES A/C debit -----XXX
BY VAT A/C DEBIT -----XXX
TO PARTY A/C CR--------------XXX
in the books of purchaser the journal entry opposite
Credit note is generally issues in following cases:
(1) an invoice amount is overstated,
(2) correct discount rate is not applied, (3) goods spoil within guaranty period, or (4) they do not meet the buyer's specifications and are returned. Also called credit memo and u can apply it vice versa for debit note.Accounting entry will be :
IN THE BOOKS OF SELLER :-
debit note :-
by party a/c debit ----xxx
to sales a/c--------------xxx
to vat a/c---------------xxx
credit note:-
BY SALES A/C debit -----XXX
BY VAT A/C DEBIT -----XXX
TO PARTY A/C CR--------------XXX
in the books of purchaser the journal entry opposite
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