Dear All
Please suggest me..
We have debited Purchase A/c with 900000/-
Now the supplier has raised a credit note to us for Rs. 50,000/- on account of Billing rate difference.
should i pass the following entry:
Party Dr. 50,000
Purchase A/c Cr 50,000
OR
Party Dr. 50,000
Trade Discount A/c 50,000
Please suggest the correct one
Thanks
Based on credit rate for difference in billing rate , the correct treatment or entry should be:
Party Dr. 50,000
To Purchase A/c Cr 50,000
agree with subhash
Thanks a ton Sir
as one of my senior is saying that it should be as follows:
Party Dr
To Trade discount A/c
Again thnx for helping me
CAclubindia
