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In this lecture, the term "debit memorandum" is defined according to fundamental accounting principles. A debit memorandum is a notification from the issuer that they have debited the recipient's account in the sender’s records. It's important to understand that "debit" refers to the amount on the left side of a ledger, which remains consistent across contexts. The debit memorandum indicates that the sender has made a debit entry, while noting that this action is recorded in the sender's records, not the recipient's. This distinction is crucial, as it often results in opposite effects on the records of the involved parties. Keep in mind that "debit" consistently refers to the left-hand side amount in ledger entries.
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