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)

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

CA Pooja Agarwal

CA Pooja Agarwal (Expert)

18 October 2012 thats already mentioned above

Message likes : 1 times