| A LTD | |
| Purchase | 70000 |
| (700 KG*100) | |
| + VAT 5% | 3500 |
| 73500 | |
Suppose 50 kg were of bad quality,money deducted for the same
Pass entry for Purchase and Quality Deduction
Will we issue Debit Note or Credit Note
View answer
ENTRY FOR Purchase
PUR 5% LOCAL DR 70000
INPUT VAT 5% DR 3500
TO A LTD 73500
Quality deduction COMPUTATION
Quality deduction 5000 (50*100)
+ VAT 5% 250
TOTAL 5250
ENTRY
A LTD DR 5250
To Quality Deduction on Pur A/c 5000
To Input Vat 5% 250
Since party is debited in this entry ,we will issue a debit note