What do you mean by the Cash Memo and Credit Memo?

Explanation:

Cash memo:

• It is a document and evidence of cash payment against the purchase of goods.
• It is an instrument issued after the payment is made.
• It is prepared by the seller and is given to the purchaser (buyer) for the cash purchase of goods, stating that the payment for the goods have been received.

Credit memo:

• It is an evidence of the credit purchase of goods.
• It is a proof of the amount owed and issued when a credit transaction takes place.
• It is issued by the supplier of goods.

Final Answer: A cash memo is a proof of cash payment and a credit memo is a proof of a credit transaction.