What do you Mean by the Cash Memo and Credit Memo?

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Solution

A cash memo is a document issued by the trader for cash purchase. If a document is issued by a trader for credit purchase, then it is called a credit memo. It is also termed as an invoice that includes the details of the party name, quantity, rate of goods purchased and the date of transaction.

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Similar questions

Q. Select the most appropriate alternative.

Which document is prepared when the goods are sold on Credit
(a) Credit memo
(b) Cash memo
(c) Cash voucher
(d) Petty cash voucher

Objective Type Questions
Answer in one sentence the following questions.

1. State the meaning of a voucher.
2. Why is a petty cash voucher prepared?
3. What do you mean by Receipt?
4. Define the term ‘Cheque’.
5. State the meaning of ‘Pay-in-slip.’
6. State the meaning of a crossed cheque.
7. What do you mean by a bank pass book?
8. Write the meaning of a Debit note.
9. Write the meaning of a Credit note.
10 What do you mean by a Cash Memo?