Recording of Transactions-II

serially numbered and dated. The format of the purchases return journal is shown in figure . (a). Purchases Return (Journal) Book Debit Name of the Supplier Note No.

(Account to be debited) Fig . (a) : Format of Purchases return (journal)book Box Debit and Credit Notes A Debit note is a document evidencing a debit to be raised against a party for reasons other than sale on credit. On finding that goods supplied are not as per the terms of the order placed, the defective goods are returned to the supplier of the goods and a note is prepared to debit the supplier; or when an additional sum is recoverable from a customer such a note is prepared to debit the customer with the additional dues. In these two situations the note is called a debit note (refer figure .

(b)). A Credit note is prepared, when a party is to be given a credit for reasons other than credit purchase. It is a common practice to make it in red ink. When goods are received back from a customer, a credit note should be sent to him.

The suggested proforma of credit note is shown in figure . (c). Name of the Firm Issuing the Note Address of the Firm No. Date of Issue .........

DEBIT NOTE Against : Supplier’s Name Goods returned as per delivery Amount (Rs) Challan No. (Details of goods returned) (Rupees ...........only) Signature of the Manager with date Fig. . (b) : Showing a specimen of debit note Name of the Firm Issuing the Note Address of the Firm No.

Date of Issue ......... CREDIT NOTE Against : Customer’s Name Goods returned by the customer Amount (Rs) Challan No. (Details of goods returned) (Rupees ...........only) Signature of the Manager with date Fig. .

(c) : Showing a specimen credit note