Debit Memorandum: It is a document which is given to an account holder in which it is stated that the account balance has been reduced as a result of factors except withdrawal of cash. It is also known as “debit memo” in short. Recipient‘s Account: It means the account of a person who is receiver of such a debit memorandum whose account is debited. To Explain: The sender of a debit memorandum is required to record debit or credit in recipient‘s account also the entry to be recorded by recipient.

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Chapter 4, Problem 9DQ

To determine

Debit Memorandum:

It is a document which is given to an account holder in which it is stated that the account balance has been reduced as a result of factors except withdrawal of cash. It is also known as “debit memo” in short.

Recipient‘s Account: It means the account of a person who is receiver of such a debit memorandum whose account is debited.

To Explain: The sender of a debit memorandum is required to record debit or credit in recipient‘s account also the entry to be recorded by recipient.

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