Debit note and Credit note

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girish

girish (Querist)

21 November 2007 Hi all
can anyone explain the story of Debit note and Credit note ?
With Example.....

CA. Mohammed Yusuf

CA. Mohammed Yusuf (Expert)

21 November 2007 Dude

There is no story for debit note and credit note.

When you debit a personal account you do it by raising a document called DEBIT NOTE, which specifies the reason why you are debiting the account. And viceversa is for Credit note.

Hope this suffice.

Yusuf

M.JANAK RAO

M.JANAK RAO (Expert)

21 November 2007 Credit Note is a document for a credit to be raised for a party for reasons other than the bill already received from that party. For example, Smart Clothing decided to give additional trade discount of Rs 5,000 to its customer Garments India. For this purpose it will raise a credit note for Garments India for the discount amount.

Debit Note
Debit Note is a document for a debit to be raised against a party for reasons other than the invoice sent to the party. For example, Smart Clothing company has sold goods worth Rs 10,000 to Garment India. Later on it discover that the goods were actually worth Rs 11,000. Hence the company will raise a Debit Note for the Garment India company for the amount that is receivable from them. In BUSY you can enter Debit Note related details by using the Debit Note voucher.

girish

girish (Querist)

21 November 2007 Thank you janak raoji

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