What is debit note & credit note

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This query is : Resolved

naveen rawat (Querist)

07 August 2015 we r seller & we entered wrong tax in two party One party actual tax 13.5% we entered 3%

other party Actual tax 1 % We entered 5%

So what we give these co debit note or credit note plz clear me

Amol S Joglekar

Amol S Joglekar (Expert)

07 August 2015 You are seller.
So the customer is YOUR debtor.
The debtor is indebted to you.
Inadvertantly you debited debtor's account with 3 % in place of 13.5 %.
So? You need to debit debtor's account by this shortfall of 13.5 - 3 = 10.5%

So you will write a letter to the debtor about your error. This letter in commerce parlour will be called as Debit Note raised by seller.OK?

Please try out the other one by yourself

naveen rawat

naveen rawat (Querist)

07 August 2015 so we Should give debit note if amount is Dr or Cr because we r seller its u r means

Arpit Shah

Arpit Shah (Expert)

07 August 2015 A debit note or debit memorandum (memo) is a commercial document issued by a buyer to a seller as a means of formally requesting a credit note. A seller might also issue a debit note instead of an invoice in order to adjust upwards the amount of an invoice already issued (as if the invoice is recorded in wrong value

Arpit Shah

Arpit Shah (Expert)

07 August 2015 A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a credit memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions.

or

a receipt given by a shop to a customer who has returned goods, which can be offset against future purchases.

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