1. Meaning ↓
A cash memo is a document stating cash received for the goods sold. It is a paid pecker for cash sales.
An account is a document showing the sum due from the buyer or the debtor it is a pecker for credit sale.
2. When Issued?
Cash memo is issued inward the illustration of a cash transaction.
Invoice is issued inward the illustration of a credit transaction.
3. Proof ↓
Cash memo serves equally an prove of cash existence paid past times the buyer to the seller.
Invoice serves equally an prove of the indebtedness of the buyer to the seller.
4. Creditor Debtor Relationship ↓
Cash memo does non exercise creditor debtor human relationship betwixt the seller together with the buyer.
Invoice creates creditor debtor human relationship betwixt the seller together with the buyer.
5. Accounting Entry ↓
Cash memo is entered inward the cash mass of the seller.
Invoice is the footing for making entries inward sales mass together with purchase book.
6. Revenue Stamp ↓
In illustration of Cash memo, 1 revenue postage is to last affixed if the cash receipt exceeds Rs.500/- (In India).
In illustration of an Invoice, in that place is no ask to affix a revenue stamp.
Comments