SOURCE

DOCUMENTS AND
VOUCHER

Presented by Pratima Gujral

Introduction
Transactions are recorded
in the books of account on
the basis of evidences
which are bills of purchase,
invoices for sale , debit and
credit notes ,etc. These
evidences being the basis Voucher is prepared before
recording it n the books of
of recording entry are
original entry i.e., Journal or
called source documents.
Special Purpose Books in a
chronological order .
 SOURCE
DOCUMENTS
 An evidence of a transaction or an event
is known as a source document. It is of
prime importance in accounting because
accounting is based on factual financial
information i.e., evidence . For example, a
cash memo showing cash sales .
Most Common Source Documents
 CASH MEMO
Cash memo is prepared by the seller when goods
are sold against cash. It has details of goods
sold,quantity,rate of each item and the total
amount received, besides the date of
transaction and other terms and conditions ,if
any. It is an evidence for the purchaser for
goods purchased against cash, and for the
seller,it is an evidence of sales for cash.
 INVOICE OR BILL
An Invoice or Bill is prepared by the seller when the
goods are sold on credit. It has details of the party
to whom goods are sold, goods sold and the total sale
amount. The original copy of the sales invoice is sent
to the purchaser and a duplicate copy is retained as
an evidence of the sales for recording it in the books
of account and for future reference. For the
purchaser, credit purchases are evidenced by bill
received from the supplier
 RECEIPT
When cash or cheque is received from a
customer, a receipt for the amount received
Is issued. The receipt is prepared in
duplicate. The original copy is given to the
party making the payment and the duplicate
is kept for record. It has details of date,
amount. name of the party and the nature of
the payment
 Pay-in-Slip
It is a source document used for depositing
cash or cheques into bank. Pay-in-Slip is a
form available from a bank. It has a
counterfoil which is retained by the depositor.
Now-a-days, banks place a box in which
cheques along with the filled pay-in-slips
can be dropped. In such cases, counterfoils
are not signed. The counterfoil of the pay-in-
slip gives details regarding the date and the
amount (in cash or cheque) deposited.
 CHEQUE
Cheque is a document in writing, drawn upon
the bank with which the account is held and
is payable on or after the due date The bank
supplies the cheque forms. The name of the
party to whom payment is to be made is
written after the words 'Pay To'. Then the
amount is written-both in words and figures.
A cheque is dated and signed by the Civen to
the par drawer. The cheque details are
entered on the counterfoil which remains with
the account holder and is the source voucher
for recording the transaction in the books of
account
 DEBIT NOTE
A Debit Note is made out evidencing that a debit
has been made to the account of the party named
in the debit note. It details the reason for the
debit. For example, a seller of goods will make a
debit note if he finds that his goods have been
invoiced for less amount. Similarly, a purchaser of
goods will make a debit note if the goods have
been over-invoiced or he has returned the goods
or the seller has allowed a lower discount, etc.
The effect of a debit note is that amount due to
the supplier is reduced or, if the account is
already settled, goods can be purchased further
without payment.
 CREDIT NOTE
Credit Note is made out evidencing that
credit has been granted to a debtor. F
example, if a customer returns goods
previously invoiced, or the customer is
allowe further discount, a credit note is
issued. The effect of a credit note is that
the amount of the customer's indebtedness
is reduced or, if it is already settled, to
enable the customer to purchase goods to
the value of credit without further
payment
VOUCHERS
 Voucher is a document evidencing a
business transaction. It flows from the
above definition that when a transaction
is entered into, an evidence to that effect
is also established. Such evidences are
Source Documents. On the basis of Source
Documents. a voucher detailing the
accounts that are debited and credited is
prepared
TYPES OF VOUCHERS
SOURCE VOUCHER
Source Vouchers or Source Documents or
Supporting Vouchers are documents which
come into existence when a transaction is
entered [Link] of Source Voucher:
(i) It is a written document.
(i) It contains complete details of the
transaction. (iii) It is a proof of a
transaction having taken place.
(iv) It is generally for a business
transaction
ACCOUNTING VOUCHER
An Accountant has with him source or supporting
vouchers for cash payments, cash receipts,
invoices for credit purchases and sales. Yet, before
recording in the books of account, these source
vouchers are analysed to determine which account
or accounts are to be debited and credited. The
decision is recorded on a document termed
'Accounting Voucher'. Thus, we can say that an
'Accounting Voucher' is a written document
containing an analysis of business transactions for
accounting and recording purposes, prepared by
the Accountant on the basis of supporting
vouchers and signee by another authorised person
TYPES OF ACCOUNTING VOUCHER

Accounting Vouchers are of two types,

- Cash Vouchers; and

Non-Cash Vouchers or Transfer

Vouchers
CASH VOUCHER
Cash Voucher is the voucher prepared
at the time of receipt or payment of
cash and includes receipt and payment
through cheques
Cash Vouchers can be of two types
namely to Credit Voucher and Debit
Voucher
NON-CASH VOUCHER
OR
TRANSFER VOUCHER
Non-Cash Vouchers are the vouchers prepared for
transactions not involving cash. Examples of these
are Invoice or Bills, Debit and Credit Notes, etc.
Non-Cash Vouchers are prepared for the
transactions of credit sales, credit purchases, goods
returned (both inwards and outwards), rectifying
the errors, etc.