As we know we carry on business and recording transaction
which mainly inculde sales and purchases we make.
So the debit note is raised when we return the good which
we have purchased , and credit note is raised when we
receive the goods which may be damaged in trasit by the
customer, when sales are made.
so in simple, debit note is one for return the goods when
purchased, and credit is one for receiving the goods from
the customer for which we have sold
When we purchase any item or thing in company or others,
then we check the bill quantity & amount, with actual rece.
material. If we find any difference in that than we passed
debit notes or credit notes. We check the bill rate with
Purchase order rate and when we found any difference than
we make debit note or credit note
A transaction that reduces Amounts Receivable from a
customer is a credit memo. For eg. The customer could return
damaged goods. A debit memo is a transaction that reduces
Amounts Payable to a vendor because, you send damaged goods
back to your vendor.
we made some Purchases for business in that time some
dameges was happend for that we raise debit note to
Credit Note:Credit note means sales returns.
We sold some goods to the client,some goods return the
client because of some reasons for that client raise the
one bill its called credit note.
entries effect in trading account.
this is the entries
Debit note = Purchases - purchase returns(Purchase return
means debit note)
purchase - 100000
purchase returns - 10000(we raised a debit not for 10000)
purchase A/C dr - 100000
to bank A/C - 90000
to purchase returns - 10000.
Credit note:Sales - sales returns(what amount we received
sales - 200000
sales returns - 20000 (what amount we received from
sales A/c dr - 200000
to Bank A/c - 180000
to sales retuns - 20000
When we sale the goods. we increase our debtors.vis-a-vis
when we purchase goods we increase our creditors.
at same time when goods return from debtors due to any
reason we must credited there a/c. that's why raised
and when we return the goods to creditors due to any reason
we must debited there a/c.that's why issued debit note.
reason's are many if there is rate differance we are adjust
this differance also in debit & credit note.
Debit note & credit note Only the name referred all the meaning then why u guys want to what is debit note & credit note.
Debit note means returns such good from debtors & he is making the debit note & Credit note means return such goods from creditors & he is making credit note ....
for e.g. pls see ans no.5 example...
hi all, i'll be grateul if u can help me on this. I'v been
selected as a PO in SBI. Simultaneously I'v got a job offer
from British High Commission in New Delhi. Can anyone
suggest which will be the better option??????????
Anand put Hire charges bill for Rs 185250. During the
course of work we supplied diesel worth Rs 25360,paid
driver battas of Rs 1050.Pl pass journal entry by taking
security deposit @ 5% and TDS @2.25%as deductions from bill
Kindly solve the following problem.
1. Bheema does not maintain his book in the double entry
system . His books showed following facts.
Receipts for the year ended 31.12.2007
from sundry Debtors
paid by bheema (proprietor)
payments made for the year ended 31.02.2007
new machinery purchased
Assets and Liabilities
As on 31.12.2006
As at 31.12.2007
from the Above data , prepare TRADING A/C, PROFFIT & LOSS
A/C for the year ended
31st december 2007 and the BALANCE SHEET as on on that date.
Kindly solve the problem