| A LTD | |
| Sales | 300000 |
| (1500 KG*200) | |
| + VAT 5% | 15000 |
| 315000 | |
Suppose A ltd did not pay anything
Pass entry for Sales ,payment and Discount received
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
Bad Debts Computation
bad debts 300000.0
+ VAT 5% 15000.0
TOTAL 315000.0
ENTRY
Bad Debts 300000
Output Vat 5% 15000
TO A LTD 315000
Since party is credited in this entry ,we will issue a credit note