Accounting entries

This query is : Resolved

suresh kumar (Querist)
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12 February 2019 Dear all,
factory in Tamilnadu sold goods to Lucknow , now lucknow has returned goods to our own head office in Delhi. In this scenario what is the total accounting procedure to close this issue.

CA Abhishek Goyal

CA Abhishek Goyal (Expert)
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13 February 2019 Hi,

If your company is following centralized accounting process, then following entries can be done.

1. For Sales
Party Acc Dr.
To sales Ac
To IGST payable Ac

2. For returning goods - Credit note to be generated
Sales Return Acc Dr..
IGST Payable Acc Dr...
To Party Account

Thanks.
Regards
CA Abhishek Goyal

suresh kumar

suresh kumar (Querist)
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14 February 2019 Thanks for the reply sir,
Can u tell me how the head office is going to account the stock in, and the accounting entries to be made in their books of account.

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Nilesh Gami

Nilesh Gami (Expert)
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14 February 2019 Inventory and IGST account shall be debited in HO account with credit to Tamilnadu branch. The Tamilnadu branch books needs as adjustment entry against receivable where it shall debit to HO account and credit to supplier account (assume sales was made in credit).