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Warranty Claims - Reg

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G.N.V.D.Kiran

G.N.V.D.Kiran (Querist)
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19 April 2008 We are running A Tata Motors Limited Authorised Service Station. we have issued some spares to the customers on Warranty replacement. at the time of issue of the material we are passing an entry in books by debiting warranty claims receivable A/c and crediting to Sales A/c. is it correct ot not crediting to sales or purchases please clarify

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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19 April 2008 you will replacement of spare parts to the client and co. give you credit notes so that is your sale it is correct methods followed by you

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