1. Meaning ↓
A cash memo is a document stating cash received for the goods sold. It is a paid pecker for cash sales.
An notation is a document showing the total due from the buyer or the debtor it is a pecker for credit sale.
2. When Issued?
Cash memo is issued inwards the example of a cash transaction.
Invoice is issued inwards the example of a credit transaction.
3. Proof ↓
Cash memo serves every bit an bear witness of cash existence paid past times the buyer to the seller.
Invoice serves every bit 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 together with the buyer.
Invoice creates creditor debtor human relationship betwixt the seller together with the buyer.
5. Accounting Entry ↓
Cash memo is entered inwards the cash majority of the seller.
Invoice is the footing for making entries inwards sales majority together with purchase book.
6. Revenue Stamp ↓
In example of Cash memo, i revenue postage stamp is to endure affixed if the cash receipt exceeds Rs.500/- (In India).
In example of an Invoice, at that spot is no involve to affix a revenue stamp.
