Professional Documents
Culture Documents
Business Documents
Business Documents
Example of an invoice
Sew and Sew is a curtain making business situated at No 92, Samora Machel in Harare. On 3 April 2009
goods were purchased from the Weaving shade situated at No 14 Industrial Street in Harare. The goods
purchased were as follows:
The supplier allowed customer 20% trade discount and the terms of the invoice were 2.5% cash discount
if paid by 31 May 2009.
Invoice
From: ___________________________
_________________________________
_________________________________
To: ________________________________
________________________________
________________________________
Delivery
Sub-total
2. Debit note
- A debit note is a document issued by the customer to the supplier informing him of any
shortages, overcharges and faults
- It contains the following information:
a) Name and address of the supplier.
b) Name and address of the customer.
c) The date.
d) Full details and quantities of the goods (and sometimes the prices) of the goods returned or
overcharged.
- When a buyer returns goods to the supplier he will send a Debit note together with the goods
informing him that his account in the buyer’s books will be debited.
- Upon receiving the debit note the seller will send a buyer a credit note.
- The credit note is an acknowledgement by the seller that the credit to the extent of the amount
mentioned has been duly passed to the customer’s account.
- Neither the supplier nor the customer makes entries in their accounting records in respect of a
debit note.
- A debit note is merely a request to the supplier to reduce the total of the original invoice.
Debit note
3. Credit Note
- It is a document issued by the business providing details of goods returned by a customer.
- It is issued by the supplier when goods are returned, reported faulty or where there has been an
overcharge on an invoice.
- It contains the following information:
a) Name and address of the supplier.
b) Name and address of the customer.
c) Date.
d) Full details, quantities and prices of goods returned or overcharged.
- To distinguish them from invoices credit notes are sometimes printed in red.
- The customer receives the original credit note and uses it to record the purchases returns.
- The supplier keeps a copy of it and uses it to record the sales returns.
Sample of a credit Note
On 6 April 2009 Sew and Sew returned goods to the Weaving Shed and issued a Debit Note. The
Weaving shed issued the following Credit Note to Sew and Sew on 9 April 2009.
CREDIT NOTE: _ _ _ _ _ _
From: ___________________________
_________________________________
_________________________________
_________________________________
_________________________________
Account: _______________________________
Accountholder:__________________________
_________________________________________
Terms:
_____________________
_____________________
* Dr = debit / CR = credit
5) Cheque
- A cheque is a written order to a bank to pay a stated sum of money to the person or business named
on the order.
6) Receipt
- A receipt is a written acknowledgement of money received and acts as proof of payment.