Question

Debit note and credit note an not be considered as the source documents in the business

Answer 1

A debit note is a source document that is prepared when goods are returned to a supplier. It contains the name of the party (supplier) whose account has been debited, along with the amount and details of the bill and the reason for the debit, in reference to which his account has been debited.

When goods are returned by a customer, a credit note is sent to the customer, indicating that his/her account has been credited in our books. A duplicate copy is retained with the supplier. It is also issued when any further discount is allowed to the customer.