debit balance

a purchase goods from b for rs 5000/-

but dont get the bill for the same

at the end of the year b showing debit balance

therefore a raise debit note

and credit b casuse is rate difference

question is here a debit  is the  rate difference

rate difference link to indirect exp.or purchase

Actually purchase is omitted in the books, but it is treated as rate diff.

As for as ur question is concerned, rate diff can be treated in two ways as u questioned.

adjust in the purchase a/c itself as if it were a purchase return or

treat it as like discount received (indirect expenses).

It depends on the accounting policies followed.

but to adjust in purchase would be the better method