Question

what is debit note and credit note ?

Answer 1

Difference Between Debit Note andCredit Note. ... 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

Answer 2

DEBIT NOTE

A debit note is prepared when goods are returned by the purchaser due to some reason.Two copies of this note are prepared . The original copy is sent to the party (i.e., the seller of the goods) to whom goods are returned and the duplicate copy is kept in the office record.

It is called debit note because the party's account is debited with the the amount written in this note for the goods returned.

The same credit note becomes credit note from the receing party's point of view because he credits the account of the party from whom he receives the note along with the goods.

CREDIT NOTE

A credit note, as stated above , is like a debit note . It is sent by the seller to the purchaser for the goods returned by the latter to the former.

It is called credit note because the party's account is credited with the amount written in this note for the goods returned by the party.

The same credit note becomes debit note for the party who has returned the goods because that party gives debit to the party sending this note for the goods received.