Cash memo is used for (a) Cash sale (b) Credit sale (c) Cash purchase (d) Credit purchase
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Cash memo is used for cash sale.
Explanation:
What is a cash memo?
- Since all the transactions in a firm demand to be noted in sequential order and have a monetary evidence, cash memo serves as a source document between a consumer and a vendor.
- While making a cash purchase, the seller provides a cash memo to the client. The memo functions as a transaction proof for both buyer and seller.
What are source documents?
- Source document (likewise recognized as supporting document) is the type of document which operates as a validation of any business transaction.
- They enclose all the details of an activity that are fundamental to be registered in the books.
- Examples of source documents include cash memo, invoice, cheque, credit note, etc.
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