Source Documents and Vouchers

Source Documents and Vouchers 

Source Documents

Source Document - A document which provides evidence of a transaction. 

• Original document which contains the details of a business transaction. 

• First proof/evidence of a business transaction.

Examples of Source Documents:

1. Cash Memo: 

• It is prepared when goods are sold for cash. 

• It is prepared by the seller.

• It contains the details of quantity sold, rate, total amount, date of transaction etc. 

2. Bill / Invoice: 

• It is prepared when goods are sold on credit.

• It is prepared by the seller.

• It contains the details of quantity sold, rate, total amount, date of transaction etc. 

• It is termed as 'invoice' for the seller and 'bill' for the customer. 

3. Cheque:

• It is an order to the bank to pay a specific amount of money to the person in whose name the cheque has been issued. 

4. Pay in Slip:

• It is a document which is prepared to deposit cash or cheque in a bank account. 

5. Debit Note: 

• It is prepared in case of purchase return. A debit note is also a document created by a buyer when returning goods received on credit.

6. Credit Note:

• It is prepared in case of sales return. A credit note is a document issued by a seller to a buyer to notify that buyer's account has been credited.

Voucher

• A document which is prepared on the basis of a source document.

• It states which account is to be debited and which account is to be credited for a transaction. 

• Transactions are recorded in the books of accounts on the basis of vouchers. 

Types of Vouchers:

1. Cash Vouchers: Vouchers which are prepared for cash transactions. 

• Credit Voucher - when cash is received

• Debit Voucher - when cash is paid

2. Non-Cash Vouchers/Transfer Vouchers: Vouchers which are prepared for non-cash transactions. 

Compound Vouchers: Vouchers which are prepared for transactions with multiple debits/credits.