Question

what do you mean by credit note​

Answer 1

Answer:

Credit note is document which is issued by a seller to a buyer . This act as a source documents for the sales return journal. In other words credit note is evidence of the reduction in sales.

Explanation:

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Answer 2

ANSWER :

A Credit Note is nothing but an intimation for having credited the account of the person to whom the note is sent with a certain amount.

In other words, when a debit note is received along with the goods returned from a customer, it signifies a claim of the customer on the seller. If the claim is accepted, then the seller will send a letter to the buyer stating the details of the goods and the amount thereof. It signifies that the customer's account has been credited with the amount written in the letter. Such a letter is known as Credit Note.

• A credit note is prepared and sent by a supplier or creditor to his customer or debtor.

• A credit note serves as an acknowledgement of return of goods.

• A credit note informs the customer that his account has been credited with the amount shown.

• A credit note generally follows a debit note i.e., a credit note is sent on receipt of a debit note.

• A credit note is the basis for making entries in the Sales Returns Book.

• A credit note is generally printed in the red ink with counterfolis to distinguish them from invoice.

• A credit note is sent when a sales invoice is over charged by mistake or a sales invoice is overcast or some special discount is allowed to the customer because of defective goods.

• A credit note is also sent by the seller to the debtor when he finds that a debtor, to whom goods have been sold on credit, has been overcharged due to some clerical or other error. In that case, the seller doesnot send a new invoice, but merely sends a credit note to the debtor for the difference.