a firm supply some goods to customer but due to some reason it was cancelled by customer and firm refund the 80% amount and charge 20% as cancellation fees
how do we record it ?
Menu
Cancellation charges/fees
Replies (9)
Whether you want journal entry or manner to deal such transaction.
I think firm should be raise the invoice of charges and buyer must get itc on this transaction.
I don't think the query is for GST
What is everyone talking here. There is assurance type warranties and service type warranties and cancellation provisions involved here. Plus customer options!
I forgot the main thing,
Cr cancellation charges
Dr. Customer/debtors/receivablez
Sale 100, refund 80, cancellation, 20!
It's like a ...
Debtor Dr. 100
Cr sales 100
Cr. Note 80
Dr. Sales 80
And
Dr loss on customer cancellation
Cr. Bank.
But
Bank 20 Dr
Sales 20 Cr
I'm a genius!
It's ridiculous. Is it under a contract?
I want to ask that whether the whole transaction of sale is reversed and then we book the cancellation charges as income ,or just reverse the transaction at 80%
Reverse the transaction @ 80%
Recent Threads
- About CMP -08
- RCM List on GST
- Resignation of Previous Auditor
- Summary of GST Notification 18/2025 (Effective 1 N
- Heard & Seen Around – Your Daily Economi
- ITC restriction for Food manufacturing units
- Consortium Partnership: GST and TDS query
- Luxury premium car - Lease or Loan
- Income tax act 40 A (3)
- Transmission of deceased's shares in physical form
Related Threads
CAclubindia
