FINANCIAL ACCOUNT
Chapter-7 Origin of Transactions-Source Documents and Preparation of Vouchers
SOURCE DOCUMENTS :-
Document is an evidence of a transaction or an event and is known as Source Document based on which accounts are debited and credited with the transacted amount.
Source document is of prime importance in accounting because accounting is based on factual financial information, i.e., evidence. For example, a cash memo showing cash sales, an invoice showing sales of goods on credit, bills of purchases showing purchases of goods on credit, a receipt made out by the receiver for cash received, etc. These documents are Source Documents and are evidence in support of a transaction. They are also sometimes called supporting documents.
Very Short Answer Type Questions :-
Q.1. Name any two source documents.
Ans. Two source documents are:
(i) Cash Memo; and
(ii)Invoice.
Q.2. Is 'Cash Memo' a source document or an Accounting Voucher?
Ans. Cash Memo is a source document prepared by the seller of goods for cash.
Q.3. What is an Invoice?
Ans. Invoice is a source document prepared by the seller of goods for credit.
Q.4. What do you mean by Voucher?
Ans. The documents prepared for the purpose in the books of recording business transactions of account are known as Vouchers.
Q.5. How an Accounting Voucher is prepared?
Ans. Accounting Voucher is prepared on the basis of source voucher after analyzing and determining account to be debited and credited.
Q.6. Briefly explain Cash Voucher?
Ans. Cash Voucher is prepared at the time of receipt or payment of cash or cheque.
Q.7. Briefly explain Credit Voucher?
Ans. Credit Voucher is prepared when cash is received.
Q.8. What is Transfer Voucher?
Ans. Non-cash vouchers (or transfer vouchers) are the documentary evidence of non-cash transactions.
Q.9. What is a Pay-in-Slip?
Ans. Pay-in-Slip is a source document for having deposits made in the bank.
Q.10. Define a Cheque?
Ans. Cheque is a written document drawn upon a specified banker and payable on demand.
Q.11. What is a Debit Note?
Ans. Debit Note:- It is a document evidencing that the account of the named person is debited for the reason stated therein.
Q.12. What is a Credit Note?
Ans. Credit Note:- It is a document confirm that the credit has been granted to the named person for the reason stated therein.
Q.13. What is a Compound Voucher?
Ans. Voucher which records a transaction that enters multiple debits/credits and one credit/debit is called Compound Voucher. It may be debit voucher or credit voucher.
0 Comments