Question

what is a debit note and credit note?

Answer 1

Debit note is a note sent by one party to another informing him that his account is debited in the sender's book.

 e.g. P (Purchaser) Purchased goods from S (Seller)


Credit note is a note sent by one party to another informing him that his account is credited in the sender's book.

 

Answer 2

Debit Note and Credit Note are used while the return of goods is made between two businesses. Debit Note is issued by the purchaser, at the time of returning the goods to the vendor, and the vendor issues a Credit Note to inform that he/she has received the returned goods.