Treatment of Sales Return

ENTRY FOR Sales 

A LTD 315000
        TO SALES 5% LOCAL 300000
        TO Output Vat 5% 15000


GOODS RETURN Computation
SALES RETURN 24000 (120*200)
+ VAT 5%            1200
TOTAL                25200

ENTRY
Sales 5% LOCAL 24000
Output Vat 5% 1200
                   TO A LTD 25200
-ea-

Q Will we issue Debit Note or Credit Note
A Since party is credited in this entry ,we will issue a credit note