Definition Cash Memo for recording of transactions - QS Study
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Cash Memo for recording of transactions

Cash Memo is a commercial document issued by the seller to the purchaser when cash is received as a payment. When a trader sells goods for cash, he gives a cash memo and when he purchases goods for cash, he receives a cash memo. Details regarding the items, quantity, rate and the price are mentioned in the cash memo. It works as a proof of cash payment made. When the cash is received for the sold goods, no debit is raised against it.

The cash memo includes the subsequent depiction:

  • Date
  • Serial Number
  • Name and address of supplier
  • Name and address of buyer
  • Unit price of goods
  • Quantity
  • Discount (if any, both for trade and cash discount)
  • Tax (VAT or Service tax as the case may be)
  • Total Amount Received
  • Signature of the cashier.