TaxTMI 
TaxTMI 
ACCOUNTING FOR CREDIT NOTE
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....CCOUNTING FOR CREDIT NOTE<br> Query (Issue) Started By: - S.C. WADHWA Dated:- 24-11-2014 Last Reply Date:- 16-1-2015 Accounting - Auditing<br>Got 2 Replies<br>Companies Law<br>33 A Pvt. Ltd. Co. made sale of its products to Foreign Co. Such foreign Co. found short quantity of material. Accordingly, it issued us debit note towards material ....
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.... short received by it. It also debited our account towards duty and handling charges borne by it on same. As far as, value of material s concerned, same shall be credited by us in sales return account. ....
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.... Query is 1 In which account we should credit the party for such duty and handling charges. 2 Foreign Company given us debit note on dated 01/11/14 in respect of sale made dt. 01/07/14. Which exchange rate should be used to calculate credit note amount i.e. ....
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.... whether date of sale or date of debit note issued by it or date when we issue credit note. Reply By CA GOPALJI AGRAWAL: The Reply: The transaction would be entered on the date of issuance of credit note (deemed date of agreement of claim) on the exchange rate prevailing on that date. The expenses would be debited an appropriate account like damages and losse....
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....s or any other caption which you consider relevant. Reply By MARIAPPAN GOVINDARAJAN: The Reply: Thanks for this full information Mr. Gopalji Agrawal.<br> Discussion Forum - Knowledge Sharing ....