In simple words about Debit and Credit notes, when there are purchase returns and sales returns in any business, debit note used for purchase returns and credit note used sales returns.
Example, ABC Company sold goods worth of Rs.50,000 to XYZ Company, After checking the goods, XYZ company has returned damaged goods worth of Rs.20,000 to ABC company. Here XYZ Company issue debit note to ABC Company.
This note will use for purchase returns, it is issued by a buyer to a seller debiting to his account and requesting for credit note.
Path: Gateway of Tally -> F11 Features -> Accounting Features
Use debit and credit notes: Yes
ABC Company has purchased 6 HP Computers from Ram Enterprises worth of each is Rs. 45,000 with GST@18% (CGST@9% and SGST@9%).
HP Computers Dr 2,70,00
CGST Dr 24,300
SGST Dr 24,300
To Ram Enterprises 3,18,600
ABC Company has returned damaged 3 Dell Computers to Ram Enterprises, here you should post the below debit note entry in Tally debiting to supplier A/c and crediting to HP Computers.
Ram Enterprises Dr 1,06,200
To HP Computers 90,000
To CGST 8,100
To SGST 8,100
This note will use for sales returns, it is issued by a seller to buyer in different situations informing that his account is credited.
Example: ABC Company has sold 8 Dell computers to Rajesh & Co each@ Rs.55,000 with GST@18% (CGST@9% and SGST@9%).
Rajesh & Co Dr 5,19,200
To Dell Computers 4,40,000
To CGST 39,600
To SGST 39,600
Rajesh & Co has returned 2 damaged Dell Computers to ABC Company, here you should record the below credit note entry.
Dell Computers Dr 1,65,000
CGST Dr 14,850
SGST Dr 14,850
To Rajesh & Co 1,94,700
Recording of GST Intrastate Sales in Tally ERP9
Recording of GST Local Purchases in Tally ERP9
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