The document explains various source documents used in accounting to record transactions, including cash memos, invoices, receipts, debit notes, credit notes, pay-in-slips, and cheques. Each document serves a specific purpose, providing evidence of business transactions and details such as amounts, parties involved, and transaction nature. These documents are essential for accurate bookkeeping and auditing.

1. Explain briefly various source documents.? updated 2023
Learning Goal: I’m working on a accounting writing question and need
the explanation and answer to help me learn.
The source documents are documents used to record the transactions in
the books of account. These documents provide evidence of a business
transaction.
These documents include cash memo, invoice, receipt voucher, debit
note, credit note, pay-in-slip, cheque etc.
1) CASH MEMO
When goods are sold or purchased for cash, the firm receives or gives
cash memos with details regarding cash transactions. These documents
become the basis for recording these transactions in the books of
accounts.
2) INVOICE
Invoice is prepared when goods are sold or purchased on credit. It
contains name of the party, quantity, price per unit and the total amount
payable. The original copy is sent to the buyer and the duplicate copy is
kept as evidence of sale and for future reference.
3) RECEIPT
When a firm receives Cash from a customer it issues a receipt as a proof
of receiving cash. It is prepared in duplicate. The original copy is handed
over to the Party making Payment and the duplicate is kept for future
reference. This document contains date, amount, name of the Party and
the nature of payment.
4) DEBIT AND CREDIT NOTE

2. These notes are prepared when goods are returned to supplier or when
an additional amount is recoverable from a customer .When goods are
returned by a customer, a proper credit note should be sent to him.
It is a written document in support of a transaction. It is a proof of a
particular transaction taking place for the value stated in the voucher.
Voucher is necessary to audit the account.
5) PAY -IN-SLIP
It is a form available in the bank for depositing cash or cheque in a bank
account. The counterfoil is returned to the depositor by the cashier with
his signature. Separate slips for depositing cash and cheques are used is
some banks.
6) CHEQUE
It is a document in writing drawn upon a specified banker and payable
on demand.
The name of the party, date, amount both in words and figures and
signature of the drawer must be filled in the cheque.
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