The Basic Reason for Raising Debit Note And Credit Note, Applying By Modern Golden Rule.

 

The Basic Reason for Raising Debit Note And Credit Note, Applying By Modern Golden Rule.

Modern Rules of Debit & Credit

Particular

Balance

Increase

Decrease

Drawings
&
Dividend

Debit

Debit

credit

Expenses

Debit

Debit

credit

Asset

Debit

Debit

credit

Liability

Credit

Credit

Debit

Equity

Credit

Credit

Debit

Revenue

Credit

Credit

Debit









Debit Note:

  • 1.          Good Purchased from KKR & Ltd ₹ 100000. ₹ 10000 is debited from the purchase amount for a Quality Defect.
  • 2.         The Sales invoice Raised ₹ 280000 instead of ₹300000. Debit Note Raised Against MR Ravinthar ₹ 20000


S.No

Particular

 

Debit

Credit

Debit/Credit Balance

1

KKR & LTD

₹10000

 

Liability Decrease

 

     Purchase A/C

 

₹10000

Expenses Decrease

 

Debit note Raised Against Purchase.

 

 

 

2

Mr. Ravinthar A/C

₹20000

 

Asset Increase

 

    Sales A/C

 

₹20000

Revenue Increase

 

Debit Note Raised Against Our Sales.

 

 

 


Credit Note:

  • 1.      Mr. Kavin Raised a Debit Note Against Our Sales Invoice for a Quality Defect ₹5000.
  • 2.      Purchase Raw material for Production from Raguman & CO ₹ 300000. But The Actual Goods Value ₹ 350000, They Raised a Debit Note and Against their Sales Invoice for ₹ 50000. 

S.No

Particular

 

Debit

Credit

Debit/Credit Balance

1

Sales A/C

₹ 5000

 

Revenue Decrease

 

      Kavin A/C

 

₹ 5000

Asset Decrease

 

Credit Note Raised Against Mr. Kavin Debit Note.

 

 

 

2

Raguman & Co A/C

₹50000

 

Liability Increase

 

      Purchase A/C

 

₹ 50000

Expenses Increase

 

Accept the Raguman’s DN & Raised CN Against Raguman’s DN.

 

 

 

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