Dr & cr note

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What r debit note & credit note?

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Debit Note is an document which is sent by an creditor to the debtor.  for example, there may be some amount unrecoverable by the supplier to his creditor.  In such case the creditor  would issue an debit note to his supplier.  in this way the balance outstanding in the books of the supplier  payble to the creditor would get reduced.

in the same way the debtor would issue an credit note to his customer, stating that his acount is being credited & the balance outstanding that is receivable gets reduced.

there may also be situation where the supplier may issue an credit note to the creditor & the debtor may issue an debit note to the customer.  this may be oin account of incorrect posting of the invoice amount to the respective accounts.


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