Question

Write Short notes on the following:
Importance of Cash Memo:

Answer 1

The importance of Cash Memo is explained as follows:
(i) On the basis of the cash memo seller as well as buyer make entries in the book kept in the stores department.
(ii) On the basis of the cash memo seller as well as buyer make entries in the cash book.
(iii) Cash memo also serves as a documentary evidence of the goods sold by the business for cash.
(iv) Cash memo also serves as a documentary evidence of the goods purchased the business by paying cash.
(v) Cash memos are usually printed and machine, numbered, even if one cash memo is hide internationally by cashier, fraud can be detected easily, and immediately.
(vi) Since Cash Memo is not a receipt, no revenue slip is required to be affixed on it.