Difference Between Cash Memo And Cash Receipt

Cash Memo is prepared to show the proofs of both cash receipts and cash payments while Cash Receipt is prepared to give only an evidence of receipt of cash from customers or other companies for the goods delivered or services rendered.

The cash memo provides a proof for cash sales transactions. The journal entry of Cash Sales of Rs. 5000 recorded is shown below:

                                                               Cash a/c  5000

                                                                             Sales a/c  5000

                                                            (Goods Sold For Cash)

The journal entry for cash receipt of Rs. 9000 received from customer (Accounts Receivable / Debtor) is shown below:

                                                                    Cash a/c  9000

                                                                                  Accounts Receivable a/c  9000

                                                           (Cash Received From Customers)