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 KCSE business studies paper 1 revision questions and answers Set 3

Outline four differences between a debit note and a credit note as a business documents.

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Answer Text:
-Debit note is used to correct undercharges while credit note is used to correct overcharges
-Debit note is the amount on an invoice issued whereas credit note reduces the amount
-The supplier debits the customers account for a debit note while for a credit note the supplier credits the customers account
-Debit note is issued when a customer fails to return while a credit note is issued when customer returns


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