In today’s world, many financial transactions are taking place through electronic mode. Cash transactions, however, still play an important role. In the case of cash transactions, one must obtain a cash receipt as proof that the transaction has taken place. The cash receipt in turn has to be acknowledged by the receiver of the cash. In this article, we will discuss how and why to notarize acknowledgement of cash receipts in the UAE.
The daily financial transactions taking place across the world have seen a massive change in the past few decades. With the rise in the internet all over the world, wired transactions are very common as well as people mostly rely on credit cards, debit cards, and many other modes of transactions instead of cash these days. The reason for this is that these modes of payment make the job easier and one does not have to carry the cash in the pocket. However, despite the convenience involved with the wired and electronic modes of payment, cash transactions still take place. These physical forms of transactions need proper paperwork to be in place. For this cash, receipts play an important role.
Defining the cash receipt and notarizing acknowledgement of cash receipts in the UAE
The amount received for a cash transaction against a purchase is mentioned on a cash receipt.
The original cash receipt is retained by the customer while the duplicate of the same is kept by the vendor for his reference in the future. On the other hand, acknowledgement of cash receipts is a legal document in which the receiver of the cash acknowledges the buyer that he/she has for the cash for the said sale and purchase of the good/buyer on the specific date. This makes him accept that there have been no dues from the customer end and that he has received the due amount in his account. This acknowledgement needs to be notarized by the Notary public in the UAE to make it legalized and enforceable in the eyes of the law.
Components of acknowledgement of cash receipts
The cash receipts in general have the following components-
- The name of the business and the address of the business from which the goods/service was bought. This is mentioned at the top of the document. This helps in knowing where exactly one must go in case a dispute arises in the future.
- The next section deals with the product description, price and quantity- this component shows exactly what are the goods for which the payment has been received. What is the description of the goods, date of purchase, quantity, and the rate at which the goods have been sold?
- At the bottom of the document is mentioned subtotal, taxes applicable, and the net amount that the customer has to pay after adding the applicable taxes on the gross amount. The net amount should be mentioned in numbers as well as words. In case of any discrepancy, the amount mentioned in the word will be taken as the actual.
- A Transaction record is the last but not the least valuable section of an acknowledgement of cash receipt. This tells how much is the actual amount that the customer paid and how much was the change that was returned to the customer. This part of the document must also mention the transaction record number so that it can be easily referred to as and when required.
The acknowledgement of cash receipts is legalized as they are supposed to be notarized by the notary public. The document should be accurate and should contain as many details as possible. This helps in making sure that no dispute arises at a later stage and both the parties have proof that the said transaction has taken place for the mentioned goods and the settlement for the same has been done already.
Read More – How To Get A Notarized Affidavit In Dubai
How to notarize acknowledgement of cash receipts in the UAE
The acknowledgement of cash receipt must be notarized by the Notary Public. Once drafted, the document must be signed by both the parties i.e. the buyer and the seller, the 2 witnesses who should be above 18 years of age, and the notary public. The importance of notarizing the cash receipt are listed below-
- It ensures that the vendor has accepted that he has been paid for the said product/services
- This also protects the payee from any problem in the future, in case he faces any dispute regarding the said transaction
- Since this contains every detail of the transaction like the amount paid, the quantity of the goods sold, the date of the transaction, description of goods, etc, this document is considered legal and enforceable as per the courts of the UAE.
If there is any doubt in your mind regarding the notarization process for the acknowledgement of cash receipts, Notary Public Dubai can help you in making the process simple and smooth.
Syed Hassan Ali has an experience of 13 years and is highly specialized in providing legal consulting for all types of notary requirements. By utilizing his diverse and deep knowledge, he has consistently aided individuals and organizations in finding flexible and timely solutions.