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CLASS XI

ACCOUNTANCY

Lesson Note on Origin of Transaction – Source documents &Preparation
of Vouchers

1. Source Documents

It is a written document which contains details of the transactions prepared at

the time, it is entered into.
It is also referred to as supporting document .

Transactions are recorded on the basis of an evidence so are known as a

source document, e.g. bills of purchases, invoices for sales, debit and credit
notes etc.

2. Cash Memo
It is prepared by the seller, for goods sold against cash. Cash memo acts as

an evidence for both the seller and purchaser of goods. For the purchaser, for
goods purchased against cash and for the seller, for sales made for cash. IT

contains details of goods sold, quantity, rate, total amount received, date of

transactions, etc.

3. Invoice Bill
It is prepared by the seller, for goods sold against credit. It contains details

such as to whom goods are sold, quantity of goods sold and the total sale

amount. One prepares an invoice but receive a bill. These two terms are
interchangeable and mean the same thing.

4. Pay-in-Slip
It is used for deposition cash or cheque into bank. It is a form which is

available from a bank having a counterfoil which is returned to the depositor

with cashier’s signature, as receipt. The counterfoil gives details regarding the
date and the amount(in cash or cheque) deposited.

5. Cheque
A per Negotiable Instrument Act, “A cheque is a bill of exchange drawn on a

specified banker and not expressed to be payable, otherwise than on demand