What is credit note and debit note
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2015
please explain
1) what is credit note & what is debit note
2) when are credit and debit notes issued
1) what is credit note & what is debit note
2) when are credit and debit notes issued
23 October 2015
Consider Purchases.
The consignment has arrived. Some goods are damaged and some are not as per P.O.
Issue Debit note the the person from whom you have bought the goods.
REverse of this...say in Sales... would be credit note.
The consignment has arrived. Some goods are damaged and some are not as per P.O.
Issue Debit note the the person from whom you have bought the goods.
REverse of this...say in Sales... would be credit note.
24 October 2015
Very Simple - Read this story
Ram went to Shopperstop for shopping and buys a Shirt for Rs. 5000. His wife did not like it, so he went back to return it. Shopperstop did not return the shirt for money but instead issued a Credit Note of Rs. 5000 which could be exchanged for any other product at shoppershop in future.
NOTE - 1: Shoppershop Issued Credit Note to you-
IT IS AN ASSET FOR YOU AND A LIABILITY FOR SHOPPERSTOP
If you remember the above, just reverse one Terminology in the above statement and situation will reverse:
NOTE - 2: You Issue credit Note to Shopperstop - [we changed just one thing - Compared to Note - 1]
ASSET FOR SHOPPERSTOP & LIABILITY FOR YOU
Note - 3: Shoperstop issues a DEBIT Note to you - [we changed just one thing Compared to Note -1]
ASSET FOR SHOPPERSTOP & LIABILITY FOR YOU
Note - 4: You Issue DEBIT Note to Shopperstop - [we changed just one thing Compared to note-2]
IT IS AN ASSET FOR YOU AND A LIABILITY FOR SHOPPERSTOP
Do not memorize all of the above, just remember the story and 1st example - derive the rest wherever necessary.
Conclusion - 2 dimensions needs to be identified:
1. Who is the issuer - You or Shopperstop
2. What is being issued - Debit note or credit note
Happy Concepts
Stay Tuned to www.precisezone.com/wp/
Ram went to Shopperstop for shopping and buys a Shirt for Rs. 5000. His wife did not like it, so he went back to return it. Shopperstop did not return the shirt for money but instead issued a Credit Note of Rs. 5000 which could be exchanged for any other product at shoppershop in future.
NOTE - 1: Shoppershop Issued Credit Note to you-
IT IS AN ASSET FOR YOU AND A LIABILITY FOR SHOPPERSTOP
If you remember the above, just reverse one Terminology in the above statement and situation will reverse:
NOTE - 2: You Issue credit Note to Shopperstop - [we changed just one thing - Compared to Note - 1]
ASSET FOR SHOPPERSTOP & LIABILITY FOR YOU
Note - 3: Shoperstop issues a DEBIT Note to you - [we changed just one thing Compared to Note -1]
ASSET FOR SHOPPERSTOP & LIABILITY FOR YOU
Note - 4: You Issue DEBIT Note to Shopperstop - [we changed just one thing Compared to note-2]
IT IS AN ASSET FOR YOU AND A LIABILITY FOR SHOPPERSTOP
Do not memorize all of the above, just remember the story and 1st example - derive the rest wherever necessary.
Conclusion - 2 dimensions needs to be identified:
1. Who is the issuer - You or Shopperstop
2. What is being issued - Debit note or credit note
Happy Concepts
Stay Tuned to www.precisezone.com/wp/
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
