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Debit note and credit note

bhavana pinisetty (student) (24 Points)

21 August 2013

who sends a debit note to whom with clear explanation and credit note?

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Bhaavna (Queen ) (1933 Points)
Replied 21 August 2013

Debit note is sent by purchaser to seller in case of purchase returns, to inform that seller account has been debited with the amount equal to the purchase returns, it also contains the quantity of goods, value of goods, and the explanation for returning the goods with the reasons relating to damages, etc...

Credit note is sent by seller to purchaser accepting the return and it informs that he is crediting the customer accounts in his books with the value of goods that has been returned and with the necessary information similar to a debit note.

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CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 22 August 2013

Debit & Credit notes are used as supplimentory invoices/documents to support a particular transaction/Entrry made in books of A/c, Mainly used in Sales & Purchases but can also be used in any other situations like penalise a supplier of Machinery for delay in supply.

Debit Note mean KAM KARNA/KATNA in case supplier or service provider but in case Debtor, BADANA

Credit Note mean Badana in case supplier or service provider but in case Debtor, kam Karna

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mahendra jangid (Dy. General Manager (Finance)) (444 Points)
Replied 22 August 2013

Debit?Credit Notes are the document to debit/credit a personal account. It means you will debit the account of the person for any activity like Sale Return, purchase Return, fee, differences, discounts, penalty, write offs and many more as the case may be. This document is an internal document. You may similarly receive debit/credit notes from third party for the reasons given above. Generally these are disputed items and therefore the other party must accept/admit the same to be recoverable...