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Origin of Transactions—Source
                      CHAPTER             Documents and Preparation of
                      CHAPTER

                            7             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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