what is the difference between debit note and credit note??

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2012 Hi Experts,

what is the difference between debit note and credit note??
i know purchase returns/sales retunrs..
is there any relation between (purchase returns/sales retunrs-debit note and credit note).
iam little bit week in english..
Could you please explain in detail..

thanks
sadasiva

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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18 October 2012 When the purchaser returns the goods to the seller the Purchaser sends a Debit Note to the seller (ie. the purchaser debits the seller in his books ie. Purchasers Books) and the Seller sends a Credit Note to the purchaser (ie. the seller credits the Purchaser in his Books ie. Sellers Books).

Following are the JVs to be passed:-

Sales Return inward A/c Dr.

To Debtor A/c

(Being goods returned by the customer)

Creditor A/c Dr.

To Goods Return A/c

(Being goods sent back to the seller)

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2012 Hi Pooja,

what is the entry in both books
vendor/customer books

thanks
sada

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CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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18 October 2012 thats already mentioned above

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