Debit Notes

What is the funda of Debit note or credit notes in books of Account ??

it will be more helpful if u explain it with an example.

Public Comments

1. Sorry, m8 i really dont know wat da answer is
2. It seems that you are asking about what debits and credits are on the balance sheet. Debits increase the value of an asset account and credits do the reverse, they decrease the value of an asset account. This is contrary to what you might think because the term debit is sometimes casually used when talking about charges. So let's go through some transactions and see what happens to the accounts. 1. ABC Company buys land for $100,000 cash Debit Land $100,000 Credit Cash $100,000 Note that in every transaction the debits and credits always balance. In this transaction both accounts are asset accounts on the balance sheet. The next example is more advanced as it deals with what happens when a business sells merchandise. It will involve four accounts which are cash (balance sheet), sales (income statement), inventory (balance sheet), and Cost of Goods Sold (income statement) 2. A customer buys a shirt from ZZ Company and pays $30 cash. It cost ZZ company $10 to make that shirt. Debit Cash $30 Credit Revenue $30 Debit Cost of Goods Sold $10 Credit Inventory $10 Hope this helps!