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Querist : Anonymous

Querist : Anonymous (Querist)

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

Hari Beldona

Hari Beldona (Expert)
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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.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 Thanks Expert

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