Accounting for credit note

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 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
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.

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.
whether date of sale or date of debit note issued by it
or date when we issue credit note.

Amol S Joglekar

Amol S Joglekar (Expert)
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24 November 2014 01. What are you talking? If material is SHORT received, where comes the question of charging DUTY and Handling Charges? Can you please clarify?
02. Was your contract in USD or INR?