How to correct creditor showing debit balance due to purchase return[URGENT]

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This query is : Resolved

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If a creditor is incorrectly showing a debit balance because of a purchase return, and payments have already been made, you need to account for the return properly. The supplier should issue a credit note for the purchase return. In Tally, you can resolve this by passing item-wise credit notes to reflect the purchase return accurately.

Sadik pm

Sadik pm (Querist)
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01 September 2021 One of my creditor is showing a debit balance to the amount of his debit note(purchase return). The payments are already paid in full and no bill are adjusted can anyone help me how to post it in tally. If possible give journal entries.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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01 September 2021 If the buyer has raised a debit note for purchase return, then the supplier is required to raise a credit note in respect of the same.
The credit balance of the buyer in the books of the supplier can either be settled by payment or by adjusting against future sales.