Please answer me

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 Hi Sir,
Please tell me about debit note and credit note. in which condition are they issued.

please answer me

B Parasuram

B Parasuram (Expert)
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20 July 2012 Debit note / Credit note is a intimation given by the firm to its suppliers / Customers respectively.

For eg If there is a shortage of goods received, then the firm/ company will raise a debit note to the supplier and then pass journal entries to reduce the liability.

Below is one of the response from our esteemed Member given a year ago.

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)