Debit Note

Definition If a buyer returns goods to the seller which are bought on credit, the seller’s account must be debited by the buyer and send this information to the seller through a note. This note is known as “Debit Note”.


Definition Cash or goods taken away by the proprietor from the business for his personal use are called his drawings. Example Mr. John withdrew from business cash $2000 and goods worth of $500 for his personal use. His total drawings have amounted to $2,500.

Direct materials yield variance

Direct materials yield variance is the variance used to analyze effect of changes in material yield on materials cost. Formula Direct materials yield variance can be Computed as: (Actual units of material inputs used – Standard units of material inputs allowed for actual outputs) x (Standard average price per unit of material inputs).