Please anybody explain me debit note & credit note & their
importance in accounts?
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Answer / shameel tirunilath
A Debit Note is issued by a customer to a supplier as a
means of formally requesting a credit note. a supplier
might also issue a debit note instead of an invoice in
order to adjust upwards the amount of an invoice already
issued
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / h.r. sreepada bhagi
Debit Notes (DN) are used to charge any amount (Other than
Sale of products or services)to another party. (For example
to claim reimbursement of expense incurred on behalf of
another party, DN is used). Likewise for Purchase Returns
also Debit Note is used.
Credit Notes are used to give credit (Other than Purchase of
Goods or Services)to another party. (For example to give
credit towards expenses incurred by another party on behalf
of a firm). Likewise for Sales Returns also Credit Note is used.
These two are important as these are the accounting
documents signifying a transaction between 2 separate
business entities having monetary implications.
| Is This Answer Correct ? | 4 Yes | 4 No |
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)
Books of P Books Of S
Purchase A/c Dr.
To S A/c
(Being goods purchased)
P A/c Dr.
To Sale A/c
(Being goods sold)
P --------> sends a debit note to S (for receiving damaged material)
Books Of P Books Of S
S A/c Dr.
To purchase return A/c
(being goods returned)
Sales return A/c Dr.
To P A/c
(being goods returned)
When the P returns the goods to the S. P sends a Debit Note to the S (ie. the P debits the S in his books ie. P's Books) and the S sends a Credit Note to the P (ie. the s credits the P in his Books ie. S's Books).
Credit note is a note sent by one party to another informing him that his account is credited in the sender's book.
When Debit Note is sent?
1. Debit note can be sent by buyer when he is overcharged.
2. It can be sent by buyer when he returns back the goods.
3. It can be sent by the seller when he has undercharged the buyer.
When Credit Note is sent?
1. Credit note can be sent by the seller when he has overcharged the buyer.
2. It can be sent by the seller when he receives back the goods.
3. It can be sent by buyer when he has been undercharged.
Another Example:-
Debit Note - When x issues debit note to y, y has to pay money to x. In the books of x, y is debited.
Example: x sells Goods worth Rs 100 to y. But later x realises that he has charged Rs 15 less by mistake. So x issues a debit note to y. y has to pay Rs 115.
Credit Note - When x issues credit note to y, y has to get money from x. In the books of x, y is credited.
Example: x sells Goods worth Rs 100 to y. But later x agrees to a discount of Rs 15 . So x issues a credit note to y. y has to pay Rs 85.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / shriram nimbalkar
Debit Note is issued against the difference of rate of purchase mentioned in the bill , and purchase order . It is given by purchase to supplier.
And credit note is taken by supplier from purchaser
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / roshan thakur
yes debit note and credit note is the very importance for
accounts, because for debtors and crediter balance
adjustment funcation, if you have any facing any problem in
debtors crediter statement difference than you use the
debit and credit note
| Is This Answer Correct ? | 3 Yes | 10 No |
Answer / sudeep kumar das
yeah Debit note & credit note is most important thing in
accounting point of view. all the debit balance show in the
Debit side and mention all the function and vice versa
| Is This Answer Correct ? | 1 Yes | 8 No |
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