Origin of Transaction:Source Documents Of Accountancy

Source Documents

Origin Of Transactions

Various transactions are made in a business every day such as purchase and sale of goods and services,receipts or payment of cash and so on.Each business transaction should be supported by documentary evidence such as cash memo,cash receipt,invoice or bill etc.

Source Documents Of Accountancy

(1) Cash Memo:When a trader sells goods for cash,he gives a cash memo and when he purchases goods for cash he receives a cash memo.Details regarding the item,quantity,rate and the total price is mentioned in the cash memo.cash transactions are recorded in the books of accounts on the basis of the cash memos.Specimen of a cash memo is:

(2) Invoice and Bill:When a trader sells goods on credit,he prepares a sale invoice which contains the name of party to whom Goods are sold,the date,quantity and total amount of sale.The original copy of the sale invoices sent to the purchaser and duplicate copy is kept for making the records in our books of accounts Similarly,when trader  purchase good on credit,he receive a credit bill from the supplier of the goods.we make an invoice on credit sale but receive bill on credit purchase.The two terms are used synonymously used and mean the same thing specimen of an invoice is given below:

(3) Receipt:When a trader receives cash from a customer,he issues a receipts containing the date,amount and the name of the customer.The original copy of the receipt is given to the customer and its duplicate copy is kept for making records in our books of accounts.In same way,whenever we make a payment we obtain a receipt from the party to whom we make payment.

(4) Debit Note:When we return goods to a supplier,we prepare a debit note and sent it to the supplier with returned goods.Debit note is a document which indicates that supplier's account is being debited.

(5) Credit Note:When goods are received back from a customer a credit note is sent to him indicating that a customer account is credited in our books.A duplicate copy of the credit note is retained for record purpose.

(6) Pay-in-slip:This is a form available from a bank and is used to deposit money in  the bank.Each pay-in -slip has a counterfoil which is returned to the depositer duly stamped and signed by the cashier of the bank.

(7) Cheque:A cheque is an order in writing drawn upon a bank to pay a specified sum to the bearer or the person named in it.Each cheque book has a counterfoil in which the same details as entered in the cheque are filled.The counterfoil remains with account holder for future reference.Specimen of a cheque is:

Thanks For Reading!!!
-Sujal Juneja 
(Juneja Technology)

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