When a p-n junction is (a) Forward Biased:
The effective barrier potential reduces i.e. (Vo−V) where Vo = barrier potential initially, V = forward voltage applied. Therefore, the thickness of depletion layer also decreases. The junction resistance becomes very low. The holes from p region move to n-side and electrons from n-side move towards p-side. The movement of holes and electrons constitute hole current (Ih) and diffusion electron (Ie). Total current I=Ie+Ih.
(b) Reverse Bias: When a voltage V (i.e. reverse bias voltage) is applied to a circuit. The effective barrier potential increases, it becomes (Vo+V). Also the thickness of depletion layer increases. The junction resistance increases. The majority of carriers in p and n-regions respectively are attracted by negative and positive terminals of the battery. Therefore, they cannot move across the junction. There is a small saturation current due to the sweep of minority carrier in p and n-regions.