Hi, A travel agent books a ticket for 3 passengers @ 10000 Per Passenger i.e. Rs.30,000/- and cancel the ticket for one of the passengers by charging a cancellation fee of Rs.1000/- and refunding Rs.9000/- So the accounting entry will be:
Customer A/c Dr. 30000
to Sales A/C Rs.30000
Customer A/C Dr. 1000
to Cancellation Fees A/C Rs.1000
Sales Return A/C Dr.10000
to Customer A/C Rs.10000
Are these entries correct? Also in terms of vouchers, when the sale is happening, we issue Invoice. And for cancellation fee Debit Note and for Refund Credit Note. Please share if any other format to be used?
CAclubindia
