What is Source Documents And Accounting Vouchers?

Category : Accounting | Answer: 1 2 Years Ago

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Accounting process begins with the origin of business transactions and it is followed by analysis of such transactions. A business transaction is a transaction, which involves exchange of values between two parties. Every transaction involves Give and Take aspect. The debit represents Take aspect and credit represents the Give aspect in a transaction. For example, when a computer is purchased for office use for cash, then the delivery of computer represents Take aspect and payment of cash represents Give aspect. Thus , business transactions are exchange of goods or services between two parties and effects of these transactions are recorded in two accounts


Source Documents and vouchers

All business transactions are based on documentary evidence. A Cash memo showing cash sale, an invoice showing sale of goods on credit, the receipt made out by the payee against cash payment, are all examples of source documents. A document which provides evidence of the transactions is called the Source Document or a voucher. It is the primary evidence in support of a business transaction. A source document is the first record prepared for a business transaction and is the basis for entries in the books of accounts. There are certain items, which have no documentary proof, such as petty expenses. In such case necessary voucher is prepared showing the necessary details. All such documents are kept in a separate file in chronological order and are serially numbered. All recording in books of accounts is done on the basis of accounting vouchers.

A Voucher is documentary evidence in support of a transaction. It is a document to record the accounting transaction. A transaction with one debit and one credit is a simple transaction and voucher prepared for such transaction is known as transaction voucher.

2 Years Ago