Difference Betwixt Cash Memo Too Account - Distinguish

1. Meaning ↓

A cash memo is a document stating cash received for the goods sold. It is a paid neb for cash sales.

An annotation is a document showing the total due from the buyer or the debtor it is a neb for credit sale.

2. When Issued?

Cash memo is issued inward the representative of a cash transaction.

Invoice is issued inward the representative of a credit transaction.

3. Proof ↓

Cash memo serves equally an bear witness of cash beingness paid past times the buyer to the seller.

Invoice serves equally an bear witness of the indebtedness of the buyer to the seller.

4. Creditor Debtor Relationship ↓

Cash memo does non practice creditor debtor human relationship betwixt the seller in addition to the buyer.

Invoice creates creditor debtor human relationship betwixt the seller in addition to 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 in addition to purchase book.

6. Revenue Stamp ↓

In representative of Cash memo, ane revenue postage stamp is to endure affixed if the cash receipt exceeds Rs.500/- (In India).

In representative of an Invoice, at that spot is no necessitate to affix a revenue stamp.