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What is debit note and credit note?


What is a debit note and credit note? What are the journal entries for these?

 
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Chartered Accountant


When the purchaser returns the goods to the seller the Purchaser sends a Debit Note to the seller (ie. the purchaser debits the seller in his books ie. Purchasers Books) and the Seller sends a Credit Note to the purchaser (ie. the seller credits the Purchaser in his Books ie. Sellers Books).



Following are the JVs to be passed:-

Sales Return inward A/c     Dr.

      To Debtor A/c

(Being goods returned by the customer)



Creditor A/c          Dr.

    To Goods Return A/c 

(Being goods sent back to the seller)





Regards,

Devendra






Total thanks : 7 times

 
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Entry for Debit Note:
.
Creditor for Goods A/c      Dr

To, Purchase Return A/c

To, Input Vat A/c (i.e. Reverse Credit)
.
Entry for Credit Note:
.
Sales Return A/c      Dr

Output Vat A/c      Dr

To, Debtor for Goods A/c

 
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Senior Financial Analyst

Nice explanation at both above

 
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Originally posted by : Devendra
When the purchaser returns the goods to the seller the Purchaser sends a Debit Note to the seller (ie. the purchaser debits the seller in his books ie. Purchasers Books) and the Seller sends a Credit Note to the purchaser (ie. the seller credits the Purchaser in his Books ie. Sellers Books).


Following are the JVs to be passed:-
Sales Return inward A/c     Dr.
      To Debtor A/c
(Being goods returned by the customer)


Creditor A/c          Dr.
    To Goods Return A/c 
(Being goods sent back to the seller)




Regards,
Devendra


 


Total thanks : 1 times

 
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Account Manager


we May Issue Debit note in Short supply and Rate Diffrence as well.

 
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whther for commision charged by supplier debit note can be raised?

 
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Sir, Kindly explain the accounting entry in respect of short supply (with stock adjustments)i.e

we supply 100 kg, to purchaser but he book 95 kg in his books, so what is the accounting entry( with effect to stock)  the diff of 5kg which is shortage or less book by purchaser.

 
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Internal Auditor


Debit note is Just a note given by the guy debiting the accounts saying "i have debited your accounted for so and so rupees for so and so reason". I mean to say,  i neednot be confined to just purchase, sales, rate or quantity difference it may be any type of debiting including expenses, reimbursement, discounts, etc etc

 

Credit note also is a note from the guy crediting another guys account saying "i have credited your account with so and so reason for so and so amount".

 

And being the notes used for a variety of transaction it will be tough to give a standard jounal entry format.

 


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whether the asset transfer from Proprietorship firm to Partnership firm after depreciation are liable to Capital Gain or Loss?      

Please reply

 
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