Reimbursement of cost incurred due to non start up porject

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2015 DEAR SIR,

MY QUESTION IS THAT IF I VENDOR & SUPPLY THE MATERIAL TO MAIN MANUFACTURER FOR THIS MANUFACURER I PURCHASE THE MATERIAL & MFG THE GOODS FOR ANY PROJECT RELATED & PROJECT NOT START THIS GOODS WILL BE SCRAP FOR ME. I ISSUE THE DEBIT NOTE FOR THE SAME & MANFACTURER GIVE ME THE PAYMENT ON BEHALF OF DEBIT NOTE.
BUT HOW TO PASS THE ENTRY IN MY ACCOUNTS BOOK. PLEASE GUIDE US & SUGGEST THE ENTRY.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 January 2015 Since you have issued debit note....
what is the description you have out?

As you said it is scrap for you...So this debit note shall be treated as OTHER income

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