HOW TO DO RATE DIFFERENCE ENTRY

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3 Points Posted on 16 June 2021
FOR EXAMPLE I PURCHASE GOODS AMT 50000 (CGST 4000 + SGST 4000)
TOTAL BILL AMT 58000 . NOR SALER GIVE ME CREDIT NOTE OF RATE DIFFERENCE 1200 (CGST 100 +SGST 100) TOTAL AMT OF CREDIT NOTE 1400. HOW TO MAKE ENTRY OF THIS TRANSACTION??.AND IF I RETURN GOODS THAN HOW TO MAKE ENTRY OF THIS TRANSACTION??
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On 16 June 2021 at 19:09 Report
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Quick Summary
This discussion explains how to handle accounting entries for rate differences on goods purchased. It covers scenarios where a seller issues a credit note for a rate difference and how to adjust stock values. The thread also provides guidance on making entries when returning goods, suggesting debiting the seller and crediting purchase returns and associated GST.

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GST Consultant
15986 Points Posted on 16 June 2021
You debit the seller. And credit itc and purchase account.
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On 16 June 2021 at 20:23
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Chartered Accountant
24588 Points Posted on 16 June 2021
Agree
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On 16 June 2021 at 20:52
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CMA
13117 Points Posted on 16 June 2021
Further, for adjustment of value of stock, credit the inventory account only with the value (not quantity).
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On 16 June 2021 at 22:28
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Chartered accountant
318 Points Posted on 17 June 2021
Creditor ( seller).........Dr
to purchase return ....cr
to gst on purchase return....cr
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On 17 June 2021 at 15:00

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