What constitutes a debit memorandum?

A debit memorandum is a document issued by a bank to communicate deductions from a business's account. In this context, such deductions often include bank service charges, which are fees that the bank deducts periodically for maintaining the account or providing certain services. This deduction reduces the bank balance, and thus the memorandum serves as an official notification for the account holder regarding the transaction.

The other options do not represent debit memoranda. Checks received from customers are deposits that increase the account balance, not deductions. Cash deposits recorded as income reflect inflows into the account rather than charges against it. Interest credited to the account indicates earnings added to the balance, which is opposite to the concept of a deduction. Therefore, a bank service charge perfectly aligns with the definition and purpose of a debit memorandum.