A LTD
Sales                   300000
(1500 KG*200)  
 +   VAT 5%                     15000
                    315000

Suppose 120 kg were of bad quality,money deducted for the same by A ltd

Pass entry for Sales and Quality Deduction

Will we issue Debit Note or Debit Note

-a-

ENTRY FOR Sales

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


Quality deduction Computation
Quality deduction 24000 (120*200)
+ VAT 5%             1200
TOTAL                 25200

ENTRY
Quality Deduction on Sales 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

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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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