Need Information on when 'Sales and Purchase' Transaction takes Place:- What is a Cr.Note & Dr.Note

This query is : Resolved

sugadeesh (Querist)
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28 May 2021 Respected Sir/Madam,

Greetings for the day.

How are you All ?? Hope All is well and going Well at your End ??

Can anyone Please inform, clarify as Well as reply reg.:-

1) When a 'Sales' Transaction is Involved:- What is Cr.Note & a Debit Note ??

2) When a 'Purchases' is Involved:- What is a Cr.Note & Debit Note ??

3) And 'in Both the Aspects':- Sales & Purchases'---> This "Cr. Note & Debit Notes"---> What are the Impacts in our Books of Accounts ?? Where does it all appear and affects ?? Why ??

Could you please explain. Kindly treat it as 'Very Urgent' and Please do the needful.

Be Safe and Take Care.

Thanks and Regards
S.Sugadeesh Kumar
9840962347

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 May 2021 1 Tax invoice issued, debiting vendor and crediting sale.
2 Tax invoice received, debiting purchase and crediting creditors.
3 Debit note and credit note are issued subsequent sale/purchase adjustment related to discount, sale/purchase return etc.

3

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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28 May 2021 1) When any sale transaction is recorded, we debit customer account and credit sale account. When C/N is raised after sale, we debit sales and credit customer. So we can say that c/n is raised in situations like sales return, excess billing etc. On the contrary, debit note would be raised in situations like short billing. So here the concept of C/N is to credit the customer and that of D/N is to debit the customer.
2) Purchase is vice versa. On purchase, we debit purchase account and credit supplier. D/N is raised to debit supplier on account of rejections, short supply etc. Usually, in case of excess supply (but short-billing) the customer does not raise C/N instead the supplier either revises invoice or raises a debit note.
Hope this is not confusing.

sugadeesh

sugadeesh (Querist)
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29 May 2021 Respected Sir/Madam,

Greetings.

I really 'Thank you Thank you Thank Both of You' for your 'Concern; Valuable Time; Effort ; Sharing the Kind information and Everything.' How so Kind both of You.

I understand 'but' the things is 'Sorry'---> I need more 'Clarity/Clarification' on:-

1) When a 'Sales' Transaction is Involved:- What is Cr.Note & a Debit Note ?? :-

"In this Scenario---> Where does this 'Both Impacts / Affects / Appears' in our "Books of Accounts." Like:- 'In P & L A/c; Balance Sheet' and 'What is the Treatment given against this '2' Notes............?? Secondly:- What will be the 'Effect / Treatment' in GST' Part also ?

2) When a 'Purchases' is Involved:- What is a Cr.Note & Debit Note ??

"In this Scenario also---> Where does this 'Both Impacts / Affects / Appears' in our "Books of Accounts." Like:- 'In P & L A/c; Balance Sheet' and 'What is the Treatment given against this '2' Notes............?? Secondly:- What will be the 'Effect / Treatment' in GST' Part also ?

Can 'You Please throw More Clarity on my recent Query.........' ??

Request to "Treat it as most Urgent and I look forward for your Valuable Reply."

Be Safe and Take Care of You and Your Family Always.

May God bless Abundantly and have Mercy on All of Us.

Thanks and Regards
S.Sugadeesh Kumar