DEBIT MEMORANDUM Definition

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DEBIT MEMORANDUM can be either a) a form or document given by the bank to a depositor to notify that the depositors balance is being decreased due to some event other than the payment of depositor originated check, e.g. bank service charges; or b) a form of document used by a seller to notify a buyer that the seller is debiting (increasing) the amount of the buyers accounts payable due to errors or other factors requiring adjustments.

Learn new Accounting Terms

EARNING POWER is earnings before interest and taxes [EBIT] divided by total assets.

WRITE-UP SERVICE is the provisioning of all reporting requirements of bookkeeping and accounting services. The following is a non-exhaustive list of reporting services provided:

  • 1099s report preparation for subcontractors
  • Bank account reconciliation
  • Check coding
  • Fixed asset schedules
  • Maintenance of general ledger
  • Payroll deposit calculations
  • Payroll tax filings
  • Personal property tax returns
  • Preparation of internal financial statements

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