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Debit/credit note

CA Jainam Shah (Chartered Accountant) (190 Points)

13 February 2013

Hi friends I am not much clear on what exactly a debit and credit note is, when is it issued and how to do accounting entry of the same in TALLY.......

All answers suggestions are welcomed..

Thank you

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CA Suhas Prabhu (Chartered Accountant) (159 Points)
Replied 13 February 2013

A Debit note is a note stating that the creditors account is debited by an amount. This is done when purchase return is made or when there is a rate difference like the creditor has charged more than agreed or a discount is given by the creditor before settlement of bills.

A credit note is issued when a debtors account is credited by an amount. This is done when sales retun is made or a discount is been given or we have charged more price other than agreed.

In Tally,

Firstly you need to activate the Debit and Credit notes. (Step: Press F11 ---> Accounting Features ---> Under Invoicing ---> Say YES to Use Debit/Credit Notes.)

Secondly while in Voucher mode

Press Ctrl+F8 ----> Credit Note

Press Ctrl+F9 ----> Debit Note

Hope this is clear to you Jainam Shah.

Regards

Suhas Prabhu

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