Back to Course


0% Complete
0/0 Steps
  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 I | 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

  • Do you like this content?

  • Follow us

Lesson Progress
0% Complete

Source Documents are written evidences 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(vii) 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 customer

(ii) Shows the number of 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 purpose

(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 entered into the return inward book when credit not 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 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.


Your email address will not be published. Required fields are marked *