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