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Debit & credit note

Aravind Balina (23 Points)

05 February 2019

can any tell me in brief: what is debit note & credit .In which cases it will be used ?

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6 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 05 February 2019

sales return >> credit note

purchase return >> debit note

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Deepak Gupta (CA Student) (15922 Points)
Replied 05 February 2019

https://www.caclubindia.com/forum/debit-and-credit-note-477103.asp

Afreen Fatima (Aricle Assisstant (Final Year)) (129 Points)
Replied 05 February 2019

Under GST both DN and CN will be issued by the supplier (i.e. registered person). Based on situation when supplier wants to debit or credit the customer for sales made to him, supplier will either issue DN or CN.

Debjit Mukherjee (19 Points)
Replied 05 February 2019

DEBTORS:-
If we Increase debtors than use DR Note
If we Decrease debtors than use CR Note
CREDITORS:-
If we Increase Creditor than use CR Note
If we Decrease Creditor than use DR Note

Vinod Babu (24191 Points)
Replied 06 February 2019

Debit Note is issued by the purchaser, at the time of returning the goods to the vendor, and the vendor issues a Credit Note to inform that he/she has received the returned goods.

When the goods are returned to the seller or supplier, a debit note is issued to him which indicates that his/her account has been debited with the repective amount. On the other hand, when a customer returns goods, a credit note is issued to him which shows that his account has been credited with the amount indicated in the note.