Credit Note: When a customer returns goods to the business, a statement called 'Credit Note' is issued to him. It contains particulars and the value of goods returned by him. The entries in Sales Returns Journal are made with the help of credit notes issued. While recording the account of sales returns, you must remember that if the original sales involve some trade discount, it is also adjusted in the value of goods returned.

Debit Note: When goods are returned to the supplier, a statement called 'Debit Note' is sent to him intimating that his account has been debited on account of the goods returned. The debit note also contains particulars and the value of goods returned. It is also prepared in I duplicate. The original is sent to the supplier and the duplicate is retained by the firm.The entries in the Purchases Returns Journal are made on the basis of the copies of debit notes , I issued, The debit notes bear a serial number which is duly recorded in the third column of , I the Purchases Returns Journal.

Invoice: When goods are purchased on credit you will receive a bill from the seller. Such a bill is called 'Invoice'. It contains the details pertaining to the quantity, description, price, trade discount, total amount, etc. It is generally prepared in duplicate. The original is given to the buyer and the duplicate is retained by the seller. The entries in the Purchase Journal are made on the basis of the purchase invoices received.