Credit Note:

A credit note is sent to customer who returns the goods. It is prepared by seller which contains details regarding the name of the customer and the details of the goods received back from the customer the main object of sending note is to inform the customer that he has been credited in the seller's books. It is a basis for preparing sales return book. It is usually printed in red ink.

Debit Note:

Debit note is a document for recording purchase return. It is prepared by buyer and sent to the suppliers for their information of debiting their account equal to the amount of goods return. It also includes the reasons of goods returned. It is important document to prepare purchase return book.