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Import Purchase Return

Baskar (CMA) (93 Points)

12 November 2021

Hi Team,

We have imported a material from china. out of which some materials got damaged and vendor agreed to adjust the rejection value against the invoice amount. Now the query is how do we post accounting entry and also if any other requirement we have to do.

pls tell me the way forward for this...

Thanks in advance.

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7 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 12 November 2021

BY TAX A/C 50

BY PURCHASES ACCOUNT A/C 450

TO BANK A/C 500

NOW 100 WORTH IS DAMAGED AND TAX ON MATERIAL ALSO NEEDS TO BE RECULATED. EG. 10 INR

BY BANK A/C110

TO PURCHASE RETURN A/C 100

TO TAX A/C 10

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 November 2021

Agree with above comment

Yashi Bansal (Student CA FINAL) (97 Points)
Replied 12 November 2021

@ Sourav What rubbish kind of rply u people give?
You r not any expert such that mentioning that u agree with any replies nowhere going to help in any sense.
so stop degrading this app by repeating this line again and again in every query.

2 Like

Arti Jain (12 Points)
Replied 12 November 2021

Saurav please maintain the decorum of CA club India

2 Like

Yashi Bansal (Student CA FINAL) (97 Points)
Replied 12 November 2021

@ Basker Accounting entry should be as follows:

1. Custom Duty A/c Dr. 50
Purchases A/c Dr. 500
To Vendor A/c 550

2. After Goods Damaged:

Vendor A/c. Dr. 110
To Custom Duty. A/c. 10
To Purchase Return A/c. 100

2 Like

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 12 November 2021

Saurav is good writer here who writes properly for many answers. He sometimes gives a gist. Anything related to imports and taxes is a different section.