Credit note and debit note

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CMA RAVI

CMA RAVI (Querist)
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17 September 2012 What do you mean by credit note or debit note and do we pass any accounting entry in tally?

deepali agarwal

deepali agarwal (Expert)
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20 September 2012 Hello,
Credit note is generally issues in following cases:
(1) an invoice amount is overstated,
(2) correct discount rate is not applied, (3) goods spoil within guaranty period, or (4) they do not meet the buyer's specifications and are returned. Also called credit memo and u can apply it vice versa for debit note.Accounting entry will be :
IN THE BOOKS OF SELLER :-
debit note :-
by party a/c debit ----xxx
to sales a/c--------------xxx
to vat a/c---------------xxx

credit note:-
BY SALES A/C debit -----XXX
BY VAT A/C DEBIT -----XXX
TO PARTY A/C CR--------------XXX
in the books of purchaser the journal entry opposite