1. Meaning ↓
A cash memo is a document stating cash received for the goods sold. It is a paid nib for cash sales.
An account is a document showing the total due from the buyer or the debtor it is a nib for credit sale.
2. When Issued?
Cash memo is issued inwards the representative of a cash transaction.
Invoice is issued inwards the representative of a credit transaction.
3. Proof ↓
Cash memo serves every bit an show of cash beingness paid past times the buyer to the seller.
Invoice serves every bit an show 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 as well as the buyer.
Invoice creates creditor debtor human relationship betwixt the seller as well as 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 as well as purchase book.
6. Revenue Stamp ↓
In representative of Cash memo, i 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 request to affix a revenue stamp.
