VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. 3.6
MEMOS

2. Video of this presentation at…
YouTube Channel for VCE Accounting

3. © Michael Allison. Author’s permission required for external use.
3.6 MEMOS
Cash Transactions Credit Transactions Other
Cash receipt
Cheque butt
Sales invoice
Purchase
invoice
Memo
Statement of
account
Order
Quote

4. © Michael Allison. Author’s permission required for external use.
Memos
 Used for internal transactions – transactions which do not involve another
business or individual entity. Examples:
 Capital contributions of non-cash items, e.g. the owner contributing a vehicle
 Drawings of non-cash items, e.g. the owner taking a pair of shoes out of the
firm’s stock as a gift for a friend
 Theft of stock – the stock is never sold so there is no transactions with another
party
3.6 MEMOS
Business
Owner

5. © Michael Allison. Author’s permission required for external use.
Memos
 Format of a memorandum or memo
TGS Clothing Supplies Date: 15/1/2015
Memo 346
Details: Withdrawal of one stock unit
Cost price: $250
Signed: G. Billings
3.6 MEMOS
Name of business
Details of
transaction
Date of
transaction
Memo #

6. © Michael Allison. Author’s permission required for external use.
Memos
 Memos ensure reliability – provides evidence of an internal transaction
Reliability:
Information is reliable if it:
• Is free from error, bias, personal opinions and estimates
• Is based on data that can be checked or verified
• Has a source document to verify it
3.6 MEMOS

7. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
Ex3.6 X