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What are Debit and Credit Notes: Meaning, Differences & Examples

What Is The Meaning of Debit Note?

What Is Debit Note as Per GST?

How Long Should Debit Note Be Retained?

What Are The Details to Be Included in a Debit Note?

What Are Some of the Common Reasons for Issuing Debit Notes?

What Are the Examples of Debit Notes?

What Is The Meaning of Credit Note?

What Is Credit Note as Per GST?

How Long Should Credit Note Be Retained?

What Are The Details to be Included in a Credit Note?

What Are Some of the Common Reasons for Issuing Credit Notes?

What Are the Examples of Credit Notes?

What Are the Differences Between Debit and Credit Notes?

Parameters

Debit note

Credit notes

Meaning

It is a document that represents debit made to a party’s account.

It is an instrument to inform another party’s account that it is credited as recorded in the seller's books.

Impact of the notes

It reduces account receivables in the books of sellers.

It reduces the amount payable in the books of buyers.

What these notes reflect

It reflects a positive amount.

It reflects a negative amount.

Accounting based on the notes

It helps update purchase return books.

It helps update sales return books.

Notes are issued in exchange for the following

It is issued in exchange for a credit memo.

It is issued in exchange for a debit memo.

FAQs About Debit and Credit Notes