Source Documents

What are Source Documents?

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.