Hey guys plz... reply as soon as possible...its very urgent
my question is " if the seller's account is showing debit balance in the books of his customer, then to net off seller must issue debit note or credit note ????......." & what he must write in the same...??
thanks in advance...
It is advance payment to seller therefore it will be shown by customer under head " Loans & Advances" under Assets side.
Whereas seller will issue Credit note to customer becoz he iz selling goods & not purchasing it.
the seller would issue debit note to clear the a/c.
Thanks guys....
It is always better to get a DEBIT NOTE from the buyer as a last resort maybe the seller can use the CREDIT NOTE
CAclubindia
