DK Goel Solutions Chapter 12 Books of Original Entry – Special Purpose Subsidiary Books

Read below DK Goel Solutions Class 11 Chapter 12 Books of Original Entry Special Purpose Subsidiary Books. These answers have been developed based on the latest Class 11 DK Goel Accountancy book used by commerce stream students issued for current year and the questions given in each chapter.

This chapter of DK Goel Accounting Solutions presents a huge variety of sums related to subsidiary book posting of transactions and purchase book which can be very helpful to understand the concepts of Subsidiary Books accounting.

The chapter also has lot of best quality problems or questions which can be very helpful to understand the concepts for Class 11 students of Accountancy and will also help build a strong foundation.

DK Goel Solutions Class 11 Chapter 12 solutions are free and will help you to prepare for Class 11 Accountancy

Books of Original Entry – Special Purpose Subsidiary Books DK Goel Class 11 Accountancy Solutions

Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 12

Question 1: Give specimen of the following, with two entries in each-
(i) Purchase Book, (ii) Purchases Return Book.

Solution 1:
Purchases Book:-

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Purchases Return Book:- Return Outwards Book of Modern Shoes, Kolkata (West Bengal)

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 2: Explain Debit and Credit note in five sentences.

Solution 2: Debit note:- When items are returned by the consumer, a debit note is prepared by the buyer which is considered a debit note since the account of the party is debited with the sum written in it.

Credit note:- When the items exchanged are retrieved, a credit note is prepared by the vendor. It is referred to as a credit note since the account of the party from whom items are returned is paid with the amount written in the note.

Question 3: Name the various entries which have to be passed through a journal through we might have kept all the subsidiary books in the business.

Solution 3: Below are the entries from which we should have maintained all the subsidiary books in the organization in a journal:-
1.) Fixed asset acquisitions on credit, i.e. Credit-based acquisitions of equipment.
2.) Making arrangements for loans in question.
3.) Providing Commodity Depreciation.

Question 1: Prepare a Purchase Book in the books of M/s Modern Furniture House, Lucknow (U.P) from the following transactions assuming CGST @ 6% and SGST @ 6% :-

2017 DK Goel Solutions Class 11 Chapter 12
Jun-05Bought from Mohan Lal & Co., Kanpur (U.P) :-
 20 Godrej Chairs @ Rs.  2,000 each
 5 Godrej Tables @ Rs.  6,000 each
 Trade Discount 20%
10Purchased from Bharat Bhushan & Sons, Varanasi (U.P) :-
 5 Almirahs @ Rs.  12,000 each
 2 Revolving Chairs @ Rs.  20,000 each
 Trade Discount 10%
14Purchased from Surya Traders, Lucknow (U.P)
 80 Desks @ Rs.  2,500 each
 10 Sofa Sets @ Rs.  20,000 each
 Trade Discount @ 15%
20Purchased for cash from Gopi Chand Haldi Ram, Delhi :-
 4 Tables @ Rs.  5,000 each
25Bought Furniture for office use from New Furniture House, Faridabad on Credit :
 5 Chairs @ Rs.  2,500 per Chair.
 2 Tables @ Rs.  5,000 per Table.

Solution 1:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-
Price of a chair = Rs. 2,000
Price of 20 chairs = Rs. 2,000 × 20
Price of 20 chairs = Rs. 40,000

Price of a table = Rs. 6,000
Price of 5 tables = Rs. 6,000 × 5
Price of 5 tables = Rs. 30,000

Price of a Almirah = Rs. 12,000
Price of 5 chairs = Rs. 12,000 × 5
Price of 5 chairs = Rs. 60,000

Price of a Revolving chairs = Rs. 20,000
Price of 2 tables = Rs. 20,000 × 2
Price of 2 tables = Rs. 40,000

Question 2: M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following :-

2017 DK Goel Solutions Class 11 Chapter 12
May-02Purchased from Fashion House, Mumbai (Maharashtra) :-
 100 Shirts @ Rs. 1,800 per Shirt
 75 T-shirts @ Rs.  1,600 per piece
 Less: Trade Discount 20%; and freight charges payable Rs.  10,000.
May-10Purchased from Appolo Garments, Kerala :-
 65 Shirts @ Rs.  2,000 per piece
 80 T-shirts @ Rs.  1,500 per piece
 Less: 20% Trade Discount and freight charges payable Rs.  2,000.
May-15Purchased from Garden Furniture House, Kolkata :-
 12 Chairs @ Rs.  5,000 per Chair
May-25Purchased from Amitabh Shirts, New Delhi for cash :-
 120 Shirts @ Rs.  1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

Solution 2: Purchases Book in the books of M/s Ram Narain & Sons, Kerala

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 3: Record the following transactions in the Sales Book of Ganesh & Co. of Jaipur (Rajasthan), who deal in Furniture. Assume CGST @ 6% and SGST @ 6% :-

2017 
Jun-04Sold to Gupta Furniture House, Agra (U.P.) :-
 120 Chairs @ Rs.  2,500 per Chair
 25 Tables @ Rs.  8,000 per Table
 Less: 5%
8Sold to Raja Furniture House, Ahmedabad (Gujarat) :-
 8 Almirahs @ Rs.  15,000 each
 9 Steel Cabinets @ Rs.  20,000 each
 Less: Trade discount of 10%
12Sold old Computer for Rs.  1,500 to Mohan & Co. on Credit.
20Sold 4 Sofa sets @ Rs.  25,000 each to Varun & Co. for cash
25Sold to New Furniture House, Jaipur:-
 5 Sofa sets @ Rs.  20,000 each
 10 Tables @ Rs.  8,000 each
28Purchased from Ram Lal & Co. Jaipur on credit :-
 50 chairs @ Rs.  2,000 each

Solution 3: Sales Book in the books of Ganesh & Co. of Jaipur, (Rajasthan) 

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-

  1. Price of a chair = Rs. 2,500
    Price of 120 such chairs = Rs. 2,500 × 120 = Rs. 3,00,000
    Price of a table = Rs. 8,000
    Price of 25 such tables = Rs. 8,000 × 25 = Rs. 2,00,000
  2. Price of a Almirah = Rs. 15,000
    Price of 8 such chairs = Rs. 15,000 × 8 = Rs. 1,20,000
    Price of a Steel cabinet = Rs. 20,000
    Price of 9 such tables = Rs. 20,000 × 9 = Rs. 1,80,000

Question 4: Record the following transactions in the Sales Book of M/s Ajanta Electronics, Ranchi (Jharkhand) assuming CGST @ 9% and SGST @ 9%:

2018 
Mar-01Sold to Vandna Electronics, Kolkata (West Bengal) Vide Invoice No. 1255 :
 50 Musical Alarm Clocks @ Rs.  800 each
 40 Wall Clocks @ Rs.  500 each
 Trade Discount 20%
10Sold to Mohan Watch Company, Patna (Bihar) Vide Invoice No. 1256 :
 25 Deluxe Wall Clocks @ Rs.  800 each
 Trade Discount 10%
15Sold to Superior Watch Company, Ranchi Vide Invoice No. 1257 :
 75 Deluxe Wall Clocks @ Rs.  800 each
 40 Super Deluxe Wall Clocks @ Rs.  1,000 each
 Trade Discount 15%
20Sold to Modern Electronics, Ranchi Vide Cash Memo No. 5234 :
 100% Musical Alarm Clocks @ Rs.  800 each
 Trade Discount 20%

Solution 4: Sales Book in the books of M/s Ajanta Electronics, Ranchi (Jharkhand)

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-

  1. Price of a Musical Alarm Clock = Rs. 800
    Price of 50 such Musical Alarm Clock = Rs. 800 × 50 = Rs. 40,000
    Price of a Wallclock = Rs. 500
    Price of 40 such Wallclock = Rs. 500 × 40 = Rs. 20,000
  2. Price of a Deluxe Wall Clocks = Rs. 800
    Price of 75 such Deluxe Wall Clocks = Rs. 800 × 75 = Rs. 60,000
    Price of a Super Deluxe Wall Clocks = Rs. 1,000
    Price of 40 such tables = Rs. 1,000 × 40 = Rs. 40,000

Question 5: Write up Return Outward Book of Malthotra & Co., Bhiwani (Haryana) from the following transactions assuming CGST @ 6% and SGST @ 6%:

2017 
Aug-04Returned to Saraswati House, Bhiwani 25 Chairs @ Rs.  1,800 per Chair, being not of specified quality.
 Trade Discount 10%
12Sent back one Dining Table to Navneet Enterprise, Karnal (Haryana) for not being polished @ Rs.  10,000 and 20 Chairs @ Rs.  2,000 each.
20Returned to Yadav & Co., Patiala (Punjab), being not according to sample :-
 20 Chairs @ Rs.  1,500 each.
 2 Dressing Tables @ Rs.  7,500 each.
28Allowance claimed from Navneet Enterprise, Ludhiana (Punjab) on account of mistake in the invoice Rs.  5,000.

Solution 5:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Point in Mind:
A ‘Debit Note’ is written by the customer and forwarded to the seller. A Debit Note is prepared for the return of merchandise by the seller for whatever reason. As the party’s account is debited with the sum written in this file, it is considered a Debit Note. The ‘Debit Note’ is the basis for writing in the Return or Return Outward Book for Transactions.

Question 6: Enter the following transactions in the Returns Inward Book of Anand Cloth House, Ajmal Khan Road, Mathura (U.P.) assuming CGST @ 2.5% and SGST @ 2.5% :-

Oct-03Chakravarti & Co. Jaipur (Rajasthan), returned to us being not according to sample :-
 50 Metre Cotton Cloth @ Rs.  200 per Metre
 30 Metre Silk Cloth @ Rs.  500 per Metre
 Trade Discount 20%
12Narain Rai & Co. Indore (M.P.), returned being not up to the approved sample :-
 25 Metre woollen cloth @ Rs.  400 per Metre
20Goods sold to Janaki Das Sita Ram, Agra (U.P.) now returned by them, being defective valued at Rs.  8,000.
28Allowance allowed to Kesari Lal & Sons, Sadar Bazar, Prayagraj (U.P.) on account of a mistake in the invoice Rs.  3,000.

Solution 6:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 7: Prepare Returns Inward and Returns Outward Books from the following in the books of Modern Shoes, Kolkata (West Bengal) assuming CGST @ 6% and SGST @ 6% :-

2018 
Jan-03Returned to Bata Shoe Co., Kolkata
 50 pairs of Chappals being not up to the approved sample @ Rs.  600 per pair
 Less: Trade Discount 20%
10Guru Nanak & Co., Kolkata, returned to us :-
 10 pairs of Shoes, for being defective @ Rs.  1,200 per pair
 Less: Trade Discount 10%
15Returned to Baluja Shoe Co., Kolkata
 20 pairs of ladies chappals @ Rs.  500 per pair
 Less: 15%
22Partap Footwear Co., Patna (Bihar), returned to us :-
 50 pairs of Shoes @ Rs.  1,400 per pair
 Less: 5%
27Manoj Shoe Co., Kolkata, returned to us :-
 20 pairs of Sandals @ Rs.  1,000 per pair
31Returned to Liberty Shoe Co., Ranchi (Jharkhand) defective shoes worth Rs.  5,000.
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 8: Enter the following transactions in the ‘Journal Proper’ of Karuna Stores :

Mar-01Purchased furniture on credit from Kuber Furniture Store for Rs.  15,000.
Mar-05Goods for Rs.  6,000 given away as charity.
Mar-12Goods worth Rs.  8,000 and Cash Rs.  4,000 were stolen by an employee.
Mar-15Arun who owed us Rs.  20,000 was declared insolvent and nothing was received from him.
Mar-18Proprietor withdrew for his personal use cash Rs.  5,000 and goods worth Rs.  10,000.
Mar-31Provide interest on capital of Rs.  5,00,000 at 6% p.a. for full year.
Mar-31Out of the rent paid this year, Rs.  5,000 is related to the next year.
Mar-31Salaries due to clerks Rs.  12,000.

Solution 8:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 9: Record the following transactions of Keshav Bros. in the proper books :

2017 
Jan. 1Assets : Cash in hand Rs.  8,500; Cash at Bank Rs.  1,40,000; Stock of goods Rs.  2,20,000; Due from Manohar Lal Rs.  30,000 and Deep Chand Rs.  24,000; Furniture and Equipment Rs.  3,00,000.
 Liabilities : Due to Sunil Rs.  15,000.
2Withdrawn from bank Rs.  20,000.
4Paid salaries Rs.  22,000.
6Sold goods to Surya Narain :
 60 metres silk @ Rs.  150 per metre
 100 metres cotton @ Rs.  70 per metre
 Less : Trade Discount @ 121212%
8Surya Narain returned 40 metres Cotton.
9Received full payment from Manohar Lal by cheque, sent it to bank, Discount allowed 3%.
10Purchased from Ganga Parshad :
 300 metres cotton @ Rs.  60 per metre
 500 metres silk @ Rs.  120 per metre
 Less : Trade Discount 10%.
12Sold goods to Vinita for cash Rs.  16,000.
13Accepted a bill for Rs.  25,000 for 30 days drawn by Ganga Parshad.
15Gave cheque to Ganga Parshad for Rs.  45,000, discount allowed by him Rs.  200.
18Paid to Sunil Rs.  14,850 after receiving discount of 1%.
20Mr. Keshav Chand took away 5 metres silk costing Rs.  100 per metre for his personal use.
24Paid rent by cheque Rs.  2,000.
25Received from Surya Narain Rs.  11,000 in full settlement of his account.
27Old newspapers sold for cash Rs.  400.
27Paid for stationery and postage Rs.  500.
28Sold 400 metres silk @ Rs.  160 per metre to Sh. Ganesh Chand.
31Received cash Rs.  40,000 from Sh. Ganesh Chand and also received a B/R from him for the balance amount due from him for 2 months.

Solution 9:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 10:
Name the books of original entry where the following transactions will be recorded with reasons there of:
(a) Goods Purchased from Ram Lal Rs. 5,000 on credit.
(b) Provision for doubtful debts created @ 5% on debtors with book value of Rs. 10,000.
(c) Defective goods sold to Babita on credit worth Rs. 4,000 were returned by her.
(d) Purchased furniture on credit from Mr. Ratan Singh for Rs. 15,000 for use in the business.

Solution 10:

Question 11: Prepare the purchase book of M/s Shiv Stationers from the following:

2010 
Jun-01Purchased from Gagan Stationery Mart on credit
 (i) 70 dozens pencils @ Rs.  25 per dozen.
 (ii) 10 dozens registers @ Rs.  15 per register.
Jun-10Purchased from Amrit Furniture
 2 Tables @ Rs.  1,500 per table.
Jun-15Purchased 3 dozens ink pots @ Rs.  80 per dozen from Mehar Paper Co. and received cash discount of Rs.  50.
Jun-18Purchased from Rehman Bros. on credit
 (i) 5 reams of white paper @ Rs.  50 per ream
 (ii) 120 pens @ Rs.  60 per dozen.
 Less trade discount of 10%

Solution 11:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-
1dozen = 12units
120 pen will be = 120/12 = 10 dozen
Price of 1 dozen pen = Rs. 60
Price of 10 dozen pen = Rs. 60 × 10 = Rs. 600

Question 12: From the following particulars prepare the Purchases Book of Rama Book Store:

Feb 1, 2017Purchased from M/s Brown & Co. on credit.
 5 gross pencils @ Rs.  100 per gross.
 1 gross registers @ Rs.  200 per dozen.
 Less: 10% trade discount.
Feb 2, 2017Purchased for cash from stationery Mart.
 10 gross exercise books @ Rs.  60 per dozen.
Feb 6, 2017Purchased from The Paper Co.
 5 reams of white paper @ Rs.  100 per ream
 10 reams of brown paper @ Rs.  65 per ream
 Less: trade discount @ 10%

Solution 12:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 13: Enter the following transactions in the Sales Book of M/s Sri Ram & Sons, Kolkata:−

2017 
Jan-05Sold to Ramesh Stationery House, Kolkata :−
 50 Dozen Pencils @ Rs.  20 per doz.
 20 Dozen Pens @ Rs.  5 per Pen
 Trade Discount 10%
8Sold to Gupta Stationery Shop, Kanpur :−
 10 Dozen Note Books @ Rs.  60 per doz.
 15 Gross Rubbers @ Rs.  10 per doz.
20Sold old newspapers for Rs.  150
24Sold to Modern Stationery House, Lucknow for Cash :−
 25 Dozen Pencils @ Rs.  22 per doz.
28Sold to Ali Mohammad & Sons, Allahabad :−
 10 Reams of Paper @ Rs.  80 per Ream
 Discount 15%
31Sold old furniture to Kedar Nath & Co., Allahabad on credit Rs. 2,200

Solution 13:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Working Note:-
1 gross = 12 Dozen
15 Gross Rubbers = 15 × 12 = 180 dozen
Price of 1 dozen = Rs. 10
Price of 180 dozen = 180 × Rs. 10 = Rs. 1800

Question 14: Prepare Sales book and Purchases book of M/s Deendayal from the following transactions:−

2016 DK Goel Solutions Class 11 Chapter 12
Jun-07Purchased from Arora & Co., Nai Sarak
 10 Chairs @ Rs.  200 each
 1 Table for Rs.  600
 Trade discount 10%
Jun-10Sold to Sudha Furniture Co., Agra
 2 Almirahs @ Rs.  2,000 each
 Less : 15%
Jun-12Sold to Meera Mart for cash
 10 Tables @ Rs.  1,000 each
Jun-15Purchased from Hira Lal & Sons for cash
 15 Chairs @ Rs.  350 each
Jun-16Purchased from Fateh Chand & Co., Delhi
 5 Chairs @ Rs.  180 each
Jun-25Sold to Ravi Sharma, Delhi
 2 Dining Tables @ Rs.  6,000 each
 Less : 10%
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 15: Following transactions were recorded in the books of Darshan Traders:−

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

You are required to prepare (i) Purchase Book; (ii) Sales Book; (iii) Purchase Return Book, and (iv) Sales Return Book.

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books

Question 16: Enter the following transactions of a dealer in electrical goods in the appropriate subsidiary books :

2017 (Rs. )
Jan. 1Assets : Cash in hand Rs.  12,400; Stock Rs.  3,60,000; Debtors : Abhilash Rs.  20,000; Bhuwan Rs.  30,000, Charu Rs.  52,000; Furniture Rs.  2,25,000. 
 Liabilities : Bank overdraft Rs.  38,000; Creditors : Dinesh Rs.  15,000; Eknath Rs.  25,000. 
3Purchased from Raghuraj & Sons : 
 80 electric Kettles @ Rs.  300 each 
 40 electric irons @ Rs.  420 each 
 20% Trade Discount. 
5Withdrew from Bank20,000
6Acceptance received from Abhilash at one month for the amount due from him. 
10Purchased a computer from Gursharan Bros. on credit for office use40,000
12Returned 10 electric kettles to Raghuraj & Sons. 
14Paid Raghuraj & Sons by cheque the balance due to them. 
15Paid to Gursharan Bros. Rs.  30,000 in cash and the balance by a cheque. 
16Paid wages in cash500
20Purchased from Dinesh : 
 10 Washing Machines @ Rs.  16,000 each 
 4 Vacuum cleaners @ Rs.  6,000 each 
 15% Trade Discount 
22Sold to Charu 
 200 electric shavers @ Rs.  250 each 
 400 toasters @ Rs.  150 each 
 450 heaters @ Rs.  200 each 
 10% Trade Discount 
24Received from Charu a cheque in full settlement of his account. The cheque is paid into bank.2,30,000
25Acceptance given to Dinesh for 30 days1,50,000
25Cheque issued to Dinesh in full settlement of his account21,000
25Sold for Cash 20 electric irons9,000
27Deposited into bank5,000
30Paid staff salaries by cheque15,000
30Bank charged incidental expenses Rs.  50 and charged interest Rs.  1,200. 

Solution 16:

DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accounts Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Chapter 12
What is a Purchase Book?

A Purchase Book is a type of subsidiary book that keeps track of the transactions of credit purchases of goods and services. In simple words, a purchase book is a register that records the credit purchases of products or services of an organization. A purchase book comes with five columns that define the date, details of the creditors, Ledger Folio number, Invoice number, price, and other details of the purchase.

What is a Purchase Return Book?

In several cases, the customers require to return certain items to the trader or supplier due to a bunch of reasons, including poor product quality, damaged product, and many more. All the types of returns are recorded in a book termed the Purchase Return Book. It is a daybook that keeps track of each purchase returns, and it is also titled the “Return Outward Book” or “Purchase Returns Day Book.”

What are the reasons for purchase returns?

Here are the primary reasons for purchase returns –
● The purchaser acquired an excessive quantity of products, and now he desires to return the unused.
● Wrong goods were delivered to the buyer.
● The goods do not meet the benchmark of quality or maybe inaccurate or non-functional.

Explain the process of Purchase Return.

As explained in DK Goel Solutions class 11 Chapter 12, When a good is eligible for a return, and the buyer desires to return them to the suppliers, a debit note is issued for the seller. The seller account gets debited, and the purchase return account gets credited on the successful return of the goods to the supplier.

What is Debit Note?

A debit note is a note issued by the purchaser in case he desires to return goods to the suppliers. The debit note is supplied to the seller, and the seller’s account is debited with the amount mentioned in the debit note, and the purchaser’s account gets credited with the same amount.

What is a Credit Note?

A credit note is basically a receipt or credit memo supplied by the seller to the purchaser to confirm that the goods have been acknowledged as return inwards and a credit has been released for the buyer’s account with the eligible amount.