Debit note & credit note

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Dipti chaudhari (Querist)
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10 September 2014 what is the concept of Debit note & credit note ? How it's work? what is the entries for that? plz tell me any sir/madam

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 September 2014 1. Debit note is issued to a person when his account is debited by the enterprise.

2. Similarly credit note is issued to a person when his account is credited by the enterprise.

Eg.
You purchased goods from a party and passed the following entry:

Purchase A/c Dr
To Creditor

Now some of the goods were defective and returned to the party. So you will debit the party by raising a debit note & pass the following entry:

Creditor Dr
To Purchase

Similar concept will be used for credit note.

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