Page 1 - Lesson Note - Origin of Transaction

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