Accounting – 2.2 Business documents | e-Consult
2.2 Business documents (1 questions)
Login to see all questions.
Click on a question to view the answer
Statement of Account
| Item | Amount |
| Initial Payment | £200 |
| Goods Supplied | £500 |
| Outstanding Balance | £300 |
Debit Note: A debit note is used by a seller to increase the amount owed by a customer. In this case, the seller would issue a debit note for £500 to the customer when the goods are supplied. This increases the customer's liability.
Credit Note: A credit note is used by a seller to reduce the amount owed by a customer. If the initial payment was made in error, or if goods are returned, a credit note would be issued for £200 to reduce the outstanding balance. Alternatively, if a discount is given, a credit note would be issued.