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debit & Credit note

SUNIL (PCC ) (282 Points)

07 January 2010

Any one tell about debit & credit note? what is the difference between them?

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5 Replies

Amir (Learner) (4016 Points)
Replied 07 January 2010

Dear Sunil,

Debit Note:- It is an advice issued to a person whose account you are Debiting in ur books...

Eg:- Issued to Debtors - After raising of invoice u noticed that one of the product was supplied at a lower price..

Issued to Creditors - After receipt of invoice from Creditor u have realized that some of the goods are to be returned, or of bad quality so u will debit his a/c.

Credit Note:- It is an advice issued to a person whose account you are Crediting in ur books...

In short it is just a formal intimation that we have debited/credited ur A/c by xxxx (amount) on account of ____________(Reason)

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SUNIL (PCC ) (282 Points)
Replied 07 January 2010

Thanks Amir- If u give an example then it clarify properly.

Amir (Learner) (4016 Points)
Replied 07 January 2010

Dear Sunil,

I have mentioned example in case of Debit Note,

and examples/reasons for Credit Notes can be simply opposite..

(Guest)

Any amount which is credit/debit to the account of Debtors/creditors is informed through Debit note/credit Note.

It may be Sales Return, Purchase Return, Sales Price Variation, Purchase Price variation, Discount on Sales
Discount on purchases, Deficit/Damage on goods sold, Deficit/Damage on goods purchased, Bank charges or freight or other charges paid on behalf of customer.