Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


When goods are returned, how about the Tax collected on
them.? The Buyer or the seller who will bear that /

Answers were Sorted based on User's Feedback



When goods are returned, how about the Tax collected on them.? The Buyer or the seller who will be..

Answer / rakeshkumar

seller as to bear the tax

Is This Answer Correct ?    14 Yes 2 No

When goods are returned, how about the Tax collected on them.? The Buyer or the seller who will be..

Answer / ajin mathew

This question can be answered on 2 viewpoints:

1.Buyer's point of view:

Here purchase is credited and the party should be debited if it is a credit purchase. here the buyer pays the tax and if he returns the goods due to damage or any other reasons the seller is liable to pay him the price which includes the tax amount also.So the entry is

Party(seller)a/c Dr


To Purchase Return

To Input VAT

2. Seller's point of view

Here Sales is debited and the party should be credited if it is a credit sales.Here the seller collects the tax and he is liable to pay back the buyer his price which includes the tax collected by him.the entry is:


Sales Return a/c Dr

Output Tax Dr


To Party(Buyer)a/c

Is This Answer Correct ?    4 Yes 0 No

Post New Answer

More Accounting General Interview Questions

When tds is deducted from the payments to suppliers, how the Entry will appear in books of accounts in tally.

3 Answers  


What are the types of Invoice Matching in AP

0 Answers   Accenture,


what is the difference between TDS & TCS? Note:- Plz don't tell the ful form of tds & tcs

3 Answers   Jaguar, National Granites,


when we are cash deposit in bank, how entry in contra (tally)software ?

8 Answers   Somerset,


What is the difference between an Invoice and a Proforma Invoice?

1 Answers  






how will rectify the error in trial balance.

0 Answers  


on 01/04/2009 Goods sold to Mr."A' on Credit at $ 1000. Exchange Rate :- 01/04/2009..........$50.00 at payment Date Exchange Rate :- 01/05/2009..........$48.00 What is Journal Entry..?

2 Answers   GTS,


If A car in Name of company got damaged. and total amount of its repairing is 15,000/- and insurance company give me 10,000/- of it. Balance amount we paid through bank or cash .Then What is the entry for this in books.Kindly mention Ledgers with their respective Group Head.

2 Answers  


What is accrual concept?

5 Answers   FIC,


A sole trader run a business, and he takes every month fixed salary, he says this salary should not be affect in profit and loss a/c, he wants this salary transfer to his capital a/c, means he wants increased his capital - My question is as per the accounting system is it possible?  

1 Answers  


What is cash profit

2 Answers   Capital IQ,


When the closing stock will be reflected in trial balance & at what value

4 Answers  






Categories