Page 30 - DEBK-XI(2020)
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                                                                              C H A P T E R




                     Origin of Transactions—Source Documents


                     and Preparation of Vouchers




                                  MEANING OF KEY TERMS USED IN THE CHAPTER


                       1.  Source Documents   It is a written document evidencing the transaction and contains details
                        or Source Voucher    of the transaction. Examples are: Cash Memo, Invoice, Bill, etc.
                       2.  Cash Memo         Cash Memo is a document of sale of goods against cash. It is issued
                                             by seller to the buyer. It has details of goods sold such as quantity, rate
                                             of each item and total amount received.
                       3.  Invoice or Bill   Invoice is a document of sale of goods on credit. It has the details of
                                             goods sold and also the name of the buyer.

                       4.  Receipt           Receipt is an acknowledgment of amount received. It has the details
                                             for date, amount and the name of the payee of the amount.
                       5.  Pay-in-Slip       This is a form provided by the bank to deposit amount into the bank.

                       6.  Cheque            Cheque is an order to the bank, in writing, to pay specified amount to
                                             the bearer or to the person named in it.
                       7.  Debit Note        Debit Note is issued by a firm to its supplier/creditor for debiting his
                                             account say, for goods returned to supplier or any other reason.
                       8.  Credit Note       Credit Note is issued by a firm to its customer for crediting his account
                                             say, for goods returned by the customer or any other reason.

                       9.  Accounting Voucher  It is a written document prepared on the basis of Source Document or
                                             Source Voucher showing the account debited or credited.
                       10.  Cash Voucher     Cash Voucher is used for cash transactions.

                       11.  Debit Voucher    Debit Voucher is prepared when payment is made.
                       12.  Credit Voucher   Credit Voucher is prepared when cash is received.

                       13.  Transfer Voucher   Transfer  Vouchers  are  used  for  recording  non-cash  transactions
                                             like,  goods  returned  (both  returns  inward  and  returns  outward)
                                             adjustment entries, etc.
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