Debit Notes

How does Debit note differfrom Credit Note?Discuss the utility of these notes?

preparatory course in commerce

Public Comments

1. Debit note and credit note are opposites. Debit note is prepared for something for which u have get payment. For example, u supplied some materials to ABC for a price , u send him an Invoice or a bill. If u have to charge something not included in the bill or invoice, u send a debit note. It really means some amount is "debited to his account.Credit note is a document used for 'crediting' the purchaser's account.. For example, u have billed him for 100 pcs of an item and 10 pcs are found defective or broken and u have to refund him the cost of those 10 pcs, u raise a 'credit note' in his favour. The value of this can either be paid to him separately or adjusted against his account.