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What is debit note and credit note?

Laxmi (Student) (74 Points)

04 May 2011

What is a debit note and credit note? What are the journal entries for these?

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12 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 04 May 2011

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)

Regards,

Devendra

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Deepak Gupta (CA Student) (15922 Points)
Replied 04 May 2011

Entry for Debit Note:
.
Creditor for Goods A/c Dr

To, Purchase Return A/c

To, Input Vat A/c (i.e. Reverse Credit)
.
Entry for Credit Note:
.
Sales Return A/c Dr

Output Vat A/c Dr

To, Debtor for Goods A/c

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P.N.Prasanna venkatesh (Senior Financial Analyst) (134 Points)
Replied 24 May 2011

Nice explanation at both above

Prakash Kumar (Acountant) (29 Points)
Replied 19 May 2012

Originally posted by : Devendra
	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) Regards, Devendra

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Sonu Kumar (Account Manager) (665 Points)
Replied 19 May 2012

we May Issue Debit note in Short supply and Rate Diffrence as well.

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bhaveshmitaliya (accounts) (22 Points)
Replied 20 May 2012

whther for commision charged by supplier debit note can be raised?

Sanjeev Kumar (Audit Clerk) (23 Points)
Replied 16 August 2012

Sir, Kindly explain the accounting entry in respect of short supply (with stock adjustments)i.e

we supply 100 kg, to purchaser but he book 95 kg in his books, so what is the accounting entry( with effect to stock) the diff of 5kg which is shortage or less book by purchaser.

llllVICTORllll (Internal Auditor) (511 Points)
Replied 16 August 2012

Debit note is Just a note given by the guy debiting the accounts saying "i have debited your accounted for so and so rupees for so and so reason". I mean to say, i neednot be confined to just purchase, sales, rate or quantity difference it may be any type of debiting including expenses, reimbursement, discounts, etc etc

Credit note also is a note from the guy crediting another guys account saying "i have credited your account with so and so reason for so and so amount".

And being the notes used for a variety of transaction it will be tough to give a standard jounal entry format.

1 Like

Himanshu Arora (Article ) (22 Points)
Replied 21 January 2014

whether the asset transfer from Proprietorship firm to Partnership firm after depreciation are liable to Capital Gain or Loss?

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Vishnu Prasad Raman (nil) (21 Points)
Replied 19 February 2014

Can you please explain in detail about credit note and debit note.

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MAHENDRA KUMAR BAGHEL (PROPERITOR) (25 Points)
Replied 23 April 2014

dear sir,

when creditor party generate debit note for schem offer discount so how to make entry in our books and pls give me which group makeing this offer schem.