Question

Write short note on the following.

Contents of credit memo

Answer 1

When goods are sold on credit, a credit memo is prepared by the seller, who records therein details of the goods sold. It is also known as an invoice or a bill. It includes details of the party, quantity, rate and total amount of goods sold, along with the date of transaction.

Contents of a credit memo are:
a. Name and address of the trader
b. Voucher number
c. Name and address of the customer
d. Date of the transaction
e. Quantity, rate and total amount of goods sold
f. Term of delivery
g. Mode of payment
h. Signature of the seller
i. Date of the source document