Debit Note is issued when some amount is deducted from Party
Example
| A LTD | |
| Purchase | 70000 |
| (700 KG*100) | |
| + VAT 5% | 3500 |
| 73500 | |
Suppose 120 kg returned
Pass entry for Purchase and Goods Return
Will we issue Debit Note or Credit Note
-a-
ENTRY FOR Purchase
PUR 5% LOCAL DR 70000
INPUT VAT 5% DR 3500
TO A LTD 73500
GOODS RETURN COMPUTATION
PUR RETURN 12000 (120*100)
+ VAT 5% 600
TOTAL 12600
ENTRY
A LTD DR 12600
TO Purchase 5% LOCAL 12000
To Input Vat 5% 600
Since party is debited in this entry ,we will issue a debit note
To pass this entry in Tally,
Go to Accounting Features-->F11 Accounting Features--->Use Debit Note Credit Note Yes
Entry is passed similar to Journal Entry
-ea-
Written on Aug. 18, 2016, 1:47 p.m.