In the company's general ledger, the bank debit memo will reduce the company's checking account (which is an asset) and will require the company to credit its Cash account (and debit another account such as Bank Fees Expense). Hence, the credit balance in the bank's liability account is reduced by a debit. The bank's liability is reduced when the bank charges the company's account for a bank fee. The liability is appropriate since the bank has the obligation to return the customer's money on demand). (The bank accepted the company's cash which is recorded by a debit to the bank's Cash account, and the bank credits its liability account Customer Deposit Accounts. The bank's use of the term debit memo is logical because the company's bank account is a liability in the bank's general ledger. A bank credit memo is an item on a companys bank account statement that increases a companys checking account balance. The NBEs NDA are defined to include net credit to the government, credit to enterprises and individuals, claims on banks, and other items net, but. A transfer of funds to another account at the bank.The fee for handling a check that the company deposited and the check was returned because of insufficient funds.The fee for printing the company's checks.Some examples of a bank debit memo include the following withdrawals from a company's checking account: In other words, a bank debit memo reduces the bank account balance similar to a check drawn on the bank account.

What does debit memo mean on a bank statement? Definition of Bank Debit MemoĪ debit memo on a company's bank statement refers to a deduction by the bank from the company's bank account.

Meaning bank memoranda