Journal Entries of Debit Note if GST Applies

Hope, you will already read the journal entries of Debit Note before applying of GST. Now GST has applied in India. Now, every accounting record will be fully adopt GST. Now, we again define the Debit Note and also  pass the journal entries in which we will also adjust GST.

Debit Note 

Debit Note is the Document which is prepared by us.

1. Which is given to Supplier for the Proof  That we returned his bought goods. We have debited his account. This enote will help to pass the journal entry of purchase return. It is given by customer to his creditor. He inform that he will now pay less amount to his supplier.

Apply of GST 

GST will also adjust against original invoice. GST liability will less due to purchase return.

In the Books of Debtor 

Creditor / Supplier  Account Debit

Purchase Return Account Credit
CGST Account Credit
 SGST Account Credit

For example

Our supplier has sent dead product to us of Rs. 10,000. Applicable GST is 18%
We have issued Debit note and we have pass following purchase return entry and also adjust same GST from already paid GST.

Creditor Account / Supplier Account Debit 11800
Purchase Return Account Credit 10,000
CGST Account Credit 900
SGST Account Credit 900

2. If our customer will not pay on the time. At that time as supplier, we can also take the penalty. At that time, we will issue debit note to customer and inform him that we are debiting his account. It means, you did not pay on the time.. Now, you have to pay both sale amount and penalty.

Apply of GST 

If we charge the penalty on our customer for not paying us on the time. Our customer's GST liability will also increase and our liability will also increase. Means GST on penalty which we have to deposit in Govt. account. Both penalty and GST liability will mention in Debit Note

In the Books of Supplier 

Our Customer / Debtor Account Debit
Penalty on Not Paid of Sales Value Credit
CGST Account Credit
SGST Account Credit

For example

Mr. A is our customer, who did not pay our Rs. 1,00,000 on the time. So, we have charged penalty. So, we have to record receivable penalty plus GST of 18%

Mr. A Account Debit 11800
Receivable Penalty or Penalty Account Credit 10000
CGST Account Credit 900
SGST Account Credit 900

3. If we received Discount from Our Supplier for Fast Payment. We can Issue Debit Note or Accept Credit Note for debit his account and Rest amount we have to Pay.

Apply of GST

At that time, our GST Tax liability will also decrease upto the level discount on fast payment.

In the Books of Customer/ Debtor 

Creditor  Account / Supplier Account Debit

Discount on Fast Payment Account Credit

CGST Account Credit

SGST Account Credit

For Example

Mr. B is our  supplier. He has offered us to pay before 30th Aug. 2017 and he will give Discount of Rs. 10,000. We are ready to  pay one month before. So, we have to debit our Creditor in our book plus decrease our GST liability through Debit Note. GST is 18%

Mr. B account Debit 11800

Receivable Discount on Fast Payment Account Credit 10000

CGST Account Credit 900

SGST Account Credit 900

Further Reading 






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: Journal Entries of Debit Note if GST Applies
Journal Entries of Debit Note if GST Applies
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock