A debit note is a document sent by a buyer to a seller, or in other words, a purchaser to a vendor while returning goods received on credit. This notifies 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.
Related Topic – Accounts Payable Process with Journal Entries
Journal Entry & Sample Format of Debit Note
In the books of seller
|Sales Returns A/C||Debit|
|To Debtor’s A/C||Credit|
>Read Credit Note