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Credit Note and Debit Note

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Credit Note and Debit Note

A credit note. Image credit debitoor.com

A credit note. Image credit debitoor.com

ZIMSEC O Level Commerce Notes: Credit Note and Debit Note

Credit Note

  • I issued by a supplier to a buyer.
  • It is usually printed in red or pink.
  • It is used when a supplier owes the buyer money.
  • It shows the flow of money in the opposite direction i.e. from the supplier to the buyer.
  • It allows the buyer to use a gift card.
  • It shows:
  1. The names and addresses of the buyer and seller.
  2. The credit note number.
  3. The overcharged amount if any.
  4. The reduction of the amount owing.
  5. The date on which the note was issued.
  • It is used to correct an overcharge arising from:
  1. Return of empty bottles e.g. a seller of soft drinks that are packaged in recycled bottles.
  2. When an invoice is overstated.
  3. When goods are returned to the supplier for various reasons e.g. they do not match the buyer’s order.
  4. Return of damaged goods.
  5. The delivered goods were short i.e. they were less than those stated in the send invoice.

Debit Note

  • Is issued by a supplier to a buyer.
  • It acts as a supplementary invoice i.e. an additional invoice.
  • It shows:
  1. The names and addresses of the buyer and supplier.
  2. The amount of undercharge or the amount to be paid.
  3. The date on which the debit note was issued.
  4. The debit note number.
  • It is used when:
  1. Requesting a buyer to top up for payment of goods already delivered.
  2. Correcting an undercharge.
  3. Goods were under invoiced.
  4. Goods were over supplied.

To access more topics go to the Commerce Notes page.

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By | 2017-01-17T11:21:32+00:00 June 23rd, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|0 Comments

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

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