Interested to Buy Any Domain ? << Click Here >> for more details...
What are reasons for giving credit note and sales return to
customers?
- 3 Answers
- 30769 Views
- I also Faced
- E-Mail Answers
Answer Posted / abc.dinesh
In case of sales returns, "Sales return account should be
debited and not Sales account"
In case of purchase returns, "Purchase return account"
account should be credited and not "Purchases a/c"
Debit Note:
a. In case of Purchase returns, the purchaser will issue a
debit note to the suppliers so that the suppliers account
is debited on issue of debit note
b. This type of note can also be issued in case of
overcharge by suppliers (practically)
Debit Note Example: In case of credit purchases [assume
Rs.1000 worth goods], journal entry will be "Purchases Dr.
and Creditor Cr." for Rs.1000. So we are crediting the
account of creditor indicating that we have to pay Rs.1000
to our creditor. At the time of purchase return [say
Rs.200], we have to debit the account of creditor
indicating that we need not pay Rs.1000. We have to pay
finally Rs.800 only.
Journal Entry:
1) Purchases a/c Dr. 1000
To Creditor a/c Dr. 1000
2) Creditor a/c Dr.200
To Purhcase Returns a/c 200
Credit Note:
a. In case of Sales returns, the seller will issue a credit
note to the purchaser
b. The purchaser account is credited on issue of credit note
Credit Note Example:
In case of credit sales [assume Rs.1000 worth goods],
journal entry will be "Debtors a/c Dr. and Sales a/c Cr."
for Rs.1000. So we are debiting the account of customer
[debtor] indicating that we have to receive Rs.1000 from
our customer. At the time of sales return [say Rs.200], we
have to credit the account of debtor indicating that we are
not going to received Rs.1000. We have to receive finally
Rs.800 only.
Journal Entry:
1) Debtor a/c Dr.1000
To Sales a/c 1000
2) Sales Return a/c Dr. 200
To Debtor a/c 200
Credit note will be from Seller point of view and Debit
note from purchaser point of view
| Is This Answer Correct ? | 23 Yes | 3 No |
Post New Answer View All Answers
Explain tangible assets?
How auditing is prepared?
hi friend i have selected in ssc cgle as accountant in audit department. can anyone tell about the work of accountant in audit department?
THIS QUESTION IS RELATED TO PAY ROLLS IF ANY BODY HAS THE FORMULAES IN EXCEL ABOUT PAYROLLS CALUCULATIONS PLS HELP ME OUT
whta is the current SBAR? Please provide the past rates from 1st january 2011 to till date.
what are the main tools of auditing?
Define vouching?
What is audit trail in siebel?
Why does a systems auditor need to use professional judgement when selecting audit procedures?
What is an internal audit and what is the role of internal audit?
Why you want to be a auditor?
what percent of wages calculate from sales of a firm (registered under manufacturing of machinery spares) sales (appr)- RS.10000000/-
while calculating drawing power for the purpose of cc limit ,while deducting creditors from stock whether to consider debit balance of creditors ,in total of creditors' credit balance ?
What do you find the most challenging in Accpuntant role
what is the reason for controls in an IS environment?
