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    Debit Memo vs. Credit Memo

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    What effect does a debit memo in a bank statement have on the Cash account? What effect does a credit memo in a bank statement have on the Cash account?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:18 pm ad1c9bdddf
    https://brainmass.com/business/accounting/debit-memo-credit-memo-272765

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    A debit is memo for a charge levied on the bank account and so the bank balance will reduce. For example the bank levies a service charge in the bank account. This will reduce the cash balance in the bank and the bank will issue a debit memo to the company which will detail the reason for the debit ...

    Solution Summary

    The solution explains the effect of Debit Memo versus Credit Memo on cash account.

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