Question

A buyer on returning goods on the ground of poor quality send a note along with the goods stating that no payment would be made in respect of goods returned the return note is called ______.

• A. Debit note
• B. Credit note
• C. Refund note
• D. Return note

Answer 1

The correct option is A Debit note

A debit note is a document evidencing a debit to be raised against a party for reasons other than sale on credit.

On finding that goods supplied are not as per the terms of the order placed, the defective goods are returned to the supplier of the goods and a note is prepared to debit the supplier; or when an additional sum is recoverable from a customer such a note is prepared to debit the customer with additional dues.

In these two situations the note is called a debit note.