Clarification on accounting head

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This discussion clarifies the correct accounting head for recording discounts and rate differences on credit and debit notes. The consensus is to use the purchase or sales head as applicable, rather than a separate indirect income or expense account, especially when GST is involved. This ensures accurate reporting within sales and purchase figures.

vivaa jain

vivaa jain (Querist)

17 January 2021 Under which accounting head ledger for Discount/ rate difference ledger should be created used for both credit note issued & credit note received as well as debit note issued & debit note recieved

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 January 2021 Use purchase and sales head as applicable no separate head to be used.

vivaa jain

vivaa jain (Querist)

17 January 2021 Ok.. Thank you sir 👍

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

17 January 2021 USE PURCHASE HEAD IF BELONGS TO PURCHASE. DONT USE INDIRECT INCOME HEAD OTHERWISE SAME WILL BE REFLECTED IN SALES UNDER GST

vivaa jain

vivaa jain (Querist)

17 January 2021 If gst is not applicable on this discount/rate difference amount then we should use purchase /sales a/c or indirect income / expenses a/c

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

17 January 2021 SHOW IT IN INDIRECT INCOME COLUMN

vivaa jain

vivaa jain (Querist)

17 January 2021 Ok.. Thank you very much 👍

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

17 January 2021 WELCOME.... MY PLEASURE.....

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