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Debit / Credit Note

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sankar ponnan (Querist)
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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

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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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.

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