What is a Debit Note?

Debit Note

A debit note is a document sent by a buyer to a seller or, in other words, a purchaser to a vendor, notifying that a debit has been made to their accounts. A debit note is issued for the value of the goods returned. In some cases sellers are seen sending debit notes which should be treated as just another invoice.


Few Characteristics of a Debit Note

1. It is sent to inform about the debit made in the account of the seller along with the reasons mentioned in it.

2. The purchase returns book is updated on its basis. (In case of return of goods)

3. It is often used to return goods on credit.

4. It is generally prepared like a regular invoice and shows a positive amount.


Journal Entry & Sample Format to Record a Debit Note

 Sales Returns A/C Debit
   To Debtor’s A/C Credit


Template for Debit Note


>Read Credit Note