Credit note to delaer

Tax queries 699 views 1 replies

Dear 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

Replies (1)

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


CCI Pro

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