Source Documents of Accountancy:

These documents are required for audit and tax assessments. They also serve as the legal evidence in case of a dispute. The following are the most common source documents:

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 these cash memos. Specimen of a cash memo is give on the next line:

Qty. Description RateAmount
3Titan Regalia D 062,3006,900
2Titan Raga 1082,7005,400
less discount 10%1250
Total 11,070
Goods once sold are not taken back or exchanged

2- Invoice and Bill:-

When a trader sells goods credit, he prepared a sell invoice which contains the name of the party to whom the goods are sold , the rate, quantity and total amount of sale. The original copy of the sale invoice is send to the purchaser and its duplicate copy and kept for making records in other books of accounts. When a trader purchases goods and credit , he receives a credit bill from the supplier of goods.

3- Receipt:-

When a trader receives cash from a customer , he issues a receipt containing the date, amount, 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 the books of accounts. In the same way, whenever we make payment we obtain a receipt from the party to whom we make payment.

4 – Debit Note:-

When we returned goods to a supplier , we prepare a Debit Note and send it to a supplier with the returned goods . Debit Note is a document which indicates that supplier’s account is being debited. It is a source document which contains the date or transactions , the name of account which is debit, the amount and reasons of debit.

A duplicate copy or the counterfoil or the ‘Debit Note’ is retained by us , on the basis of which , the supplier’s accounts is debit in our books.

5- Credit Note:-

When goods are received back from a customer a credit note is sent to him indicating that the customer’s account has been Credited in our books. A duplicate copy of Credit Note is retained for record purpose.

6- Pay-in-slip:-

This is a form available in a bank is used to deposit money in the bank . Each pay-in-slip has a counterfoil which is return to a depositor duly stamped and signed by the cashier of the bank .

7- Cheque:

A Cheque is an order in writing drawn a bank to pay a specified sum to the bearer of the person name in it. Each Cheque has a counterfoil in which the same details enter in the Cheque filled . The counterfoil remains with the accountholder for future reference.

Author: sapna panth

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