Question

Differentiate between Debit Note and Credit Note.

Answer 1

Debit Note	Credit Note
1. Debit note is made if the buyer is undercharged in the invoice for any reason viz-error, omission etc.	1. The credit note is made if the buyer has been overcharged in the invoice and to amend the error which is made.
2. It is prepared with ordinary ink which is used in our daily routine	2. It is either written in red ink or is printed red in colour.
3. The amount of the debit note is debited in the account of the buyer.	3. The amount of credit note is credited in the account of the buyer.
4. The purchaser has to make more payment than invoice amount i.e., the number of invoice increases.	4. The purchaser has to make less payment than invoice amount i.e., the number of invoice decreases.
5. The employees of the seller give information about the error.	5. The error is pointed out by the complaint letter of the buyer.