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

Suppose Company issued a Credit Note to A Ltd for Turnover Discount as follows

A LTD
Turnover discount 15000
 +   VAT 5% 750
  15750

Pass entry for Sales ,payment and Discount given

Will we issue Debit Note or Credit Note

-a-

ENTRY FOR Sales

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


DISCOUNT COMPUTATION
DISCOUNT 15000.0
+ VAT 5%     750.0
TOTAL         15750.0

ENTRY
Discount Given 15000
Output Vat 5% 750
                   TO A LTD 15750
-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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