Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

solve a ouery

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 WHAT IS DEBIT NOTE AND CREDIT NOTE IN DETAIL WITH EXAMPLE

Hari Beldona

Hari Beldona (Expert)

08 December 2011 For example 1.A company purchases raw materials of 100 units at100 on credit from a party
Then the journal entry is

Purchase A/c is debited
Party's A/c will be credited

suppose out of 100 units 10 units were damaged not suitable for consumption then you have to Raise Debit note for 10x100=1000 on the party

Debit Note

Name & address of the party Date:

Your account has been debited with1000 for 10 units received in damaged condition.

Journal entry for debit note

Party's a/c debit
Purchase a/c is credit
(100 damaged units returned vide debit note No dated .....)

Vice versa in case of sales

then you will be giving credit note instead of debit note

The above is illustrative only there may be many other transactions which need debit/credit note.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 Thanks Expert

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now