Source documents in accounting pdf

They are external documents or documents related to external activities which are first input in the accounting source systems. Examples of source documents are invoice or bill, cash memo, cheque, sales order, purchase order , credit note, petty cash voucher, credit card sales voucher, etc. Source documents arrive in a company through many different departments, mostly via sales and purchase departments.

They are sometimes referred to as supporting documents. Sales Order SO — is a document issued to the customer and generated by the firm itself. Cash Memo — Cash memo is a document prepared by the seller when goods are sold in cash. It contains all details of the transaction such as quantity, amount, selling price, etc.

It has all details about the credit sale such as the purchaser, date, price, quantity, etc. Debit Note — A debit note is a document sent by a buyer to a seller while returning goods received on credit. This notifies that a debit has been made to their accounts.

Credit Note — A credit note is a document sent by a seller to the buyer notifying that a credit has been made to their account against the goods returned by the buyer. Pay-in-Slip — It is a source document used for depositing cash and cheques into a bank. Pay-in-slip acts as an evidence of deposit.

Cheque — It is an order in writing drawn on the bank to pay the mentioned amount payable to the bearer or the person specified on the cheque. Petty Cash Voucher — It is used for petty cash expenses such as stamps, postage and handling, stationery, carriage, etc. Most tax departments will require you to maintain a good office filing system for at least 5 or 7 years. Site Sponsors. How to do a loan journal entry for transactions for bank loans, car loans, intercompany loans, and loan forgiveness including loan amortization.

Day to day bookkeeping process for startups. Open a bank account, select and setup software or paper record, record your daily transactions, read your summary report. A Chart of Accounts helps a business classify income and expense transactions into specific categories and is like a map to the general ledger accounts. This feature requires JavaScript to be turned on. Accounting Source Documents. The documents come in all sorts of shapes, sizes, colors and types of paper.

They can be on physical paper or electronic files like PDF.