30 October 2010
CREDIT NOTE: Provided to you by ur creditor, it amount to income, you have to pay less to creditor. CREDIT NOTE made by creditor and you have to make debit side entry to creditor account.
REVERSE FOR DEBIT NOTE
Credit note to be consider as Income and Debit note to be consider as Expense.
30 October 2010
Credit note is issued by supplier in respect of Purchaser account has been credited in books, whereas debit note is a note issued by purchaser to supplier in respect of supplier Account has been debited in books.
IN THE BOOKS OF SELLER:-
Debit note:-
By party a/c debit ----xxx To sales a/c--------------xxx To vat a/c---------------xxx
Credit note:-
BY SALES A/C Debit -----XXX BY VAT A/C Debit -----XXX TO PARTY A/C CR--------------XXX (in the books of purchaser the journal entry opposite)
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