Difference Between Debit Note And Credit Note

Debit Note And Credit Note take place between sellers and buyers when goods are returned due to the unsatisfactory condition, or some defects found on goods or merchandise, or goods damaged, or goods delivered not according to the specific requirements of the buyer i.e, he ordered 5 fans but only 3 fans dispatched alongwith 2 tables to the desired place, etc.

A debit note is issued by the buyer to the seller intimating him that he returned the goods due to unsatisfactory condition, defects or not according to the requirements specified by the buyer while a credit note is issued by the seller to buyer (customers) informing (intimating) him that he accepts his offer and replaced the goods returned and credit the customer’s name in the Accounts Receivable Subsidiary Ledge or Book.