What is debit and credit note

Question

Accepted Answer

Debit note and credit note are documents used in accounting to record adjustments made to a transaction.

Debit note is issued when a buyer returns goods to a seller or when there is an overcharge in the invoice.
Credit note is issued when a seller returns goods to a buyer or when there is an undercharge in the invoice.
Debit note increases the buyer's account balance while credit note decreases it.
Credit note increases the seller's account balance while debit note decreases it.
Both debit and credit notes are used to correct errors in invoices and to keep track of returns and adjustments.
Debit and credit notes are important for maintaining accurate financial records and for ensuring that transactions are properly recorded.

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