Vijay Kumar (Job) (41 Points)
05 May 2012Dear Sirs,
One of my dealer paid field force expenses, for the same amount I issued Credit Note. But he is not accepting the CN and saying it is reflecting in his books of accounts as a revenue. But I issued CN towards reimbursement of expenses only.
Pls.clarify is my transaction is correct or how to reimburse.
Regards
Vijay Kumar
CA Hardik Bunha
(self)
(2121 Points)
Replied 06 May 2012
Yes my friend you can issue credit note if this expense it related to business transaction.
in the book of dealer pass entry as foolows
when exp. paid
you......Dr
to Bank.......Cr
for credit note
Discount......Dr
to you.......Cr.
in the next payment it will be adjusted
CAclubindia
