21 January 2021
SIR Mr.A sells the goods to B by an invoice. B receives and wants to return the goods due to the poor quality to the original supplier A. B prepares debit note against the original invoice number. Then, the A returns back the goods from B and accounts the same in his stock? Questions / Doubts are, 1- Can A issue Credit Note to B ? If yes, which number he has to put as a reference number ? 2- What is the treatment in both of their accounts while B returns the goods in same month and while it happens in the next month? 3- In Credit / Debit Note, GST should be separately shown? guide me plz thanks in adv
21 January 2021
1. Yes, original invoice number is used as reference number.
2. Sales Return in books of A & Purchase Return in books of B.
3. GST would be shown separately in Credit Note.
CAclubindia
