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