DEBIT & CREDIT NOTES

Can you people please explain me the concept of debit and credit notes in a company's operation. Also its effects on debtors & creditors accounts? Please give a detailed descripttion. I am patient enough to read.

Replies (3)

a debit note is issued by a buyer to the seller, when he returns the goods that he may have purchased. The impact is, that he credit  purchases account and debits the creditor account in his books. And expects the creditor to make the corresponding entries in his books.

A credit note is issued by a seller to a customer, when the customer returns the goods purchased. It is a intimation that the customer's account has been credited and as a result his liability has reduced.

nikhil u replied well but debit & credit notes are not issued only for the purpose (as explained by u). these may be issued for various other reasons also (e.g. quality & quantity discount, difference in calculation of invoice amount etc.). and both debit & Credit notes can be issued by either parties.


Accounting : in the books of issuer of debit nots


concerned party (to whom debit note is issued)'s a/c      Dr.


              To  P/R or quality & quantity disc. etc.


Accounting : in the books of receipent of Debit Note:


S/R or quality & qty. disc. etc..   a/c Dr.


 To concerned party (from whom the Dr. Note is received)'s a/c.


similaly in the case of credit note (but opposite).


these are the single(consolidated) entry. it may also be done in two different entries alternatively.


accountin in the books of receipnt of Dr. Note


1.  Dt. Note A/c     Dr.


                 To Party


2.  Reason (what ever) a/c      Dr.


                  To Dr. Note


 


 please keep in mind entries are made according to the purpose for which Dr./Cr. Notes are issued

thank you Sir,

honestlt, i didn't know the other reasons for which debit and credit notes are prepared...thanks for the info....

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details