• Answer of this question

    How to write purchase return entry in debt note
    Davneet Singh's image
    Davneet Singh

    Debit Note is issued when some amount is deducted from Party

    Example

    A LTD
    Purchase 70000
    (700 KG*100)  
     +   VAT 5% 3500
      73500

    Suppose 120 kg returned

    Pass entry for Purchase and Goods Return

    Will we issue Debit Note or Credit Note

    -a-

    ENTRY FOR Purchase

    PUR 5% LOCAL DR 70000
    INPUT VAT 5% DR 3500
                             TO A LTD 73500


    GOODS RETURN COMPUTATION
    PUR RETURN 12000 (120*100)
    + VAT 5%         600
    TOTAL             12600

    ENTRY
    A LTD DR 12600
                  TO Purchase 5% LOCAL 12000
                  To Input Vat 5% 600

    Since party is debited in this entry ,we will issue a debit note

    To pass this entry in Tally,

    Go to Accounting Features-->F11 Accounting Features--->Use Debit Note Credit Note Yes

    Entry is passed similar to Journal Entry

    -ea-


    Written on Aug. 18, 2016, 1:47 p.m.