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    Origin of Transaction

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    rudra
    This document discusses source documents in accountancy that support business transactions. Source documents include cash memos, invoices, bills, debit notes, credit notes, pay-in slips, cheques, and vouchers. Cash memos are issued for cash sales and purchases, while invoices are used for credit sales and bills for credit purchases. Debit notes are prepared when goods are returned to suppliers and credit notes when goods are returned by customers. Vouchers authorize payments and specify accounts to be debited or credited, with different types of vouchers for cash and non-cash transactions. Compound vouchers contain multiple debits and one credit or multiple credits and one debit.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Origin of Transaction

    Uploaded by

    rudra
    137 views7 pages
    This document discusses source documents in accountancy that support business transactions. Source documents include cash memos, invoices, bills, debit notes, credit notes, pay-in slips, cheques, and vouchers. Cash memos are issued for cash sales and purchases, while invoices are used for credit sales and bills for credit purchases. Debit notes are prepared when goods are returned to suppliers and credit notes when goods are returned by customers. Vouchers authorize payments and specify accounts to be debited or credited, with different types of vouchers for cash and non-cash transactions. Compound vouchers contain multiple debits and one credit or multiple credits and one debit.

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    This document discusses source documents in accountancy that support business transactions. Source documents include cash memos, invoices, bills, debit notes, credit notes, pay-in slips, cheques, and vouchers. Cash memos are issued for cash sales and purchases, while invoices are used for credit sales and bills for credit purchases. Debit notes are prepared when goods are returned to suppliers and credit notes when goods are returned by customers. Vouchers authorize payments and specify accounts to be debited or credited, with different types of vouchers for cash and non-cash transactions. Compound vouchers contain multiple debits and one credit or multiple credits and one debit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    137 views7 pages

    Origin of Transaction

    Uploaded by

    rudra
    This document discusses source documents in accountancy that support business transactions. Source documents include cash memos, invoices, bills, debit notes, credit notes, pay-in slips, cheques, and vouchers. Cash memos are issued for cash sales and purchases, while invoices are used for credit sales and bills for credit purchases. Debit notes are prepared when goods are returned to suppliers and credit notes when goods are returned by customers. Vouchers authorize payments and specify accounts to be debited or credited, with different types of vouchers for cash and non-cash transactions. Compound vouchers contain multiple debits and one credit or multiple credits and one debit.

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    Introduction - Origin of transactions: Source Documents of

    Accountancy
    Origin of transactions: Source Documents of Accountancy
    Source documents:
    The documents that support the authenticity of business transactions are
    called as source documents. Every business transactions must be supported by
    documentary evidence like cash memo, invoice, bill, debit note etc. Such
    documents report the date, the amount, parties involved and the nature of
    transactions.
    1. Cash memo: When a trader sells goods for cash he gives a cash memo and
    whenever purchases goods for cash he receives a cash memo. It shows the
    details of the items, quantity, rate and the total price is mentioned in cash
    memo.
    2. Invoice: When a trader sells goods on credit he prepares a invoice which
    shows the details about the name of the party, the date, the quantity, the rate
    and the total amount of sales.
    3. Bill: When a trader purchases goods on credit he receives a credit bill from
    the supplier, which shows the details about the name of the party, the date,
    the quantity, the rate and the total amount of purchases.
    4. Receipt: Whenever a trader receives a payment from the customers he
    issues a receipt signifying that he had received the payment from the customer
    which shows the date, amount and name of the customer.
    5. Debit note: When we return the goods to a supplier, we prepare a debit
    note and send it to the supplier with the returned goods, which shows that the
    supplier account has been debited.
    6. Credit note: When a customer returns the goods to us, we prepare a credit
    note indicating that the suppliers account has been credited.
    7. Pay in slip: This is a form available from the bank and is used to deposit the
    money in the bank. Each pay in slip carries a counterfoil which is returned
    depositor duly stamped and signed by cashier of the bank.

    8. Cheque: A cheque is an order in writing drawn upon the bank to pay a


    specified sum on a specified date to a specified person or to the bearer of the
    instrument.
    9. Vouchers: A voucher is a document which provides authorization to pay and
    on the basis of which transactions are recorded in the books of original entry.
    - A separate voucher is prepared for every transaction.
    - It specifies the accounts to be debited or credited.

    Specimen of a voucher
    Types of vouchers:
    1. Cash vouchers: Cash vouchers are prepared for cash payments and cash
    receipts
    • Debit voucher (cash payments)
    For cash payment of expenses
    For cash purchases of goods.
    For cash purchase and investment
    For cash purchase of fixed assests
    For cash payment to creditors
    Contents
    i) Date of preparing of vouchers
    ii) Serial number of voucers
    iii) Name of account debit
    iv) Narration
    v) Net amount of transaction
    • Credit vouchers (cash receipts)
    For cash receipts of incomes.
    For cash sale of goods.
    For cash sales of investment
    For cash sales of fixed assests
    For cash receipt from debtor
    Contents
    i) Date of preparing of voucher
    ii) Serial number of voucher
    iii) Name of account credited
    iv) Narration
    v) Net amount of transaction
    ss
    2. Non cash vouchers/ transfer vouchers:(non cash transactions)
    For credit purchases and sales.
    For return of goods sold on credit.
    For credit purchase or credit sale of investments
    For credit purchase or sale of fixed assest
    For providing depreciation
    Contents

    i) Date of preparing voucher


    ii) Serial number of voucher’
    iii) Name of account debited and credited
    iv) Narration
    v) Net amount of transaction
    vi) Source document number
    Compound vouchers: A document that shows multiple debits and one credit
    or which contains multiple credits and one debit is called as compound
    vouchers.
    compound voucher may be two types i) debit voucher ii) credit voucher
    Debit voucher: A document showing transaction that contains multiple debits
    and one credit is call debit voucher.
    Credit voucher: A document showing a transaction that contains multiple
    credits and one debit is called Credit voucher.

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