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Why a debit note is called by that name?

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Because the customer has the Accounts Payble which is Credit , he reverses the entry when he returns the Purchases and decreases his Accounts Payable which is Debit , thats why he issues a Debit Note .

Similarly the Supplier when recieves the debit note from customer reduces his Accounts Recievable which is Credit thats why he issues a Credit Note.

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