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  1. Introduction to Booking Keeping and Accounting | Week 1
    9 Topics
    1 Quiz
  2. Introduction to Books of Account | Week 2
    5 Topics
    1 Quiz
  3. Subsidiary Books of Account I | Week 3
    4 Topics
    1 Quiz
  4. Subsidiary Books of Account II | Week 4
    4 Topics
    1 Quiz
  5. Principles of Double Entry Book Keeping | Week 5
    1 Topic
    1 Quiz
  6. Cash Book | Week 6
    6 Topics
    1 Quiz
  7. Petty Cash Book | Week 7
    1 Topic
    1 Quiz

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Source Documents are written evidence of business transactions that describe the essential facts of those transactions. They provide adequate information for preparing the books of account.

The documents are as follows:

(1) Invoice
(2) Receipts
(3) Credit note
(4) Debit note
(5) Petty Cash Voucher
(6) Statement of accounts
(7) Cheque

1. Invoice:

It sets out the full details of goods sent by the suppliers to the buyer stating the quantity, price, discount given, and terms of payment.

Uses of Invoice:

(i) It shows the discount given to customers.
(ii) Shows the number or quantity of goods.
(iii) Shows the terms of payment.

2. Receipts:

This is a document that acknowledges that payment has been received from the buyer. It is issued out as evidence of payment.

Uses of Receipts:

(i) As evidence of payment.
(ii) It shows the date of payment.
(iii) For auditory purposes.
(iv) States the actual amount received and who received it.

3. Credit Note:

This is a document sent by the seller to the buyer to correct an overcharge. It occurs because some goods which have been charged are returned as damaged or not as ordered. It is sent to the customer for a reduction in the amount owed by him. If goods are returned, they will be entered in the return outward book while they will be entered into the return inward book when a credit note is issued out.

Uses of Credit Note:

(i) To reduce an overcharge.
(ii) Used if the customer returned damaged goods.

4. Debit Note:

It is a document sent by the seller to the buyer to correct an undercharge or when goods are not charged in the invoice.

Uses of Debit Note:

(i) To correct an undercharge.
(ii) When Invoice is not well priced.

5. Petty Cash Voucher:

This is a document that covers small payments for expenses credited to the petty Cashbook.

Uses of Petty Cash Voucher:

(i) It covers small expenses.
(ii) It determines the amount of cash float.

6. Statement of Account:

This is a document that is sent by the seller to the buyer at regular intervals to inform him of all transactions made during the period and the amount due.

Uses of Statement of Account:

(i) To check the accuracy of the entry.
(ii) Shows the amount of goods bought and payment made.
(iii) It shows the balance due for payment.

7. Cheque:

This document is an unconditional order, in writing, addressed by the drawer to the banker to pay on demand a specified sum of money, to the person named as the payee on the cheque.


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