Debit and credit note.

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Rohit Kumar Gupta

Rohit Kumar Gupta (Querist)
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18 April 2012 kindly clear the concept of debit note and credit note.....i am quite confused.....

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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25 April 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)