ARCHIES HIGHER SECONDARY SCHOOL

SOURCE DOCUMENTS
All business transactions should be supported by documentary evidence such as invoices, debit notes, credit notes, pay-in-
slip, cheque, cash memo, cash receipt, etc. These business documents are termed as ‘Source Documents’.
i) Explains the nature of the transaction.
ii) Shows the amount involved in it.
iii) Provides written evidence of the transaction
iv) Provides authentic proof of the correctness of the recorded transaction.
v) Helps in audit and tax assessments.
vi) Serves as the legal evidence in case of a dispute.

TYPES OF SOURCE
DOCUMENTS

CASH BILL & PAY – IN DEBIT CREDIT

RECEIPT CHEQUE
MEMO INVOICE – SLIP NOTE NOTE

TYPES OF SOURCE DOCUMENTS

I) CASH MEMO: When a trader sells the goods in cash, he gives cash memo and when he purchases the
goods in cash, he receives the cash memo. Cash memo contains the details of the quantity of goods rate and
price of goods. On the basis of these cash memos, cash purchases and cash sales are recorded.

CASH MEMO
CHUNNU LAL BAKERY
123, LAL BUNGLOW, KANPUR - 9
No. 786 Date: 12th May, 2024
QUANTITY DESCRIPTION RATE AMOUNT
(₹) (₹)
7 BREAD 25 175
4 COOKIES 60 240
TOTAL 415
(Rupees Four Hundred Fifteen Only)
Goods once sold will not be taken back. For CHUNNU LAL BAKERY
II) BILLS AND INVOICE: Invoices and bills, are used for credit purchases and credit sales. In case of credit
sales, the seller prepares a document called 'Invoice' showing particulars of goods sold including quantity,
price and packing details. It is prepared in duplicate. The first copy is sent to the purchaser and the second
copy is used by the trader for recording in his books, the transaction of sales.

INVOICE
CHUNNU LAL BAKERY
123, LAL BUNGLOW, KANPUR - 9
No. 1622 Date: 17th May, 2024
MEHUL BAKERY
SHYAM NAGAR KANPUR
QUANTITY DESCRIPTION RATE AMOUNT
(₹) (₹)
100 BREAD 25 2,500
50 COOKIES 60 3,000
70 MUFFINS 35 2,450
TOTAL 7,950
(Rupees Seven Thousand Nine – Hundred Fifty Only)
SALES MANAGER
III) RECEIPT: When a business receives the money from the customer, a document named receipt is given, on
which customer's name and date are mentioned. The original copy is given to the customer and duplicate copy
is used by the trader for recording the transaction in his books. In the same manner, when a trader pays the am
amount. He receives a receipt as acknowledgement of payment.

RECEIPT
CHUNNU LAL BAKERY
123, LAL BUNGLOW, KANPUR - 9
No. 8752 Date: 22th May, 2024
Received with thanks from M/s MEHUL BAKERY, SHYAM NAGAR a sum of
Rupee Seven Thousand Nine – Hundred Fifty Only in
Cash / Cheque No. 14879 dated 17th May, 2024 .

Authorised Signature
NOTE:- Cheque are Subject to Realisation.
IV) CHEQUE: It is a document which contains an order from the customer to a banker authorizing him to pay a
specified sum of money. Each cheque has a counterfoil on which details of issue, i.e., name of the payee and
amount are recorded. This counterfoil is retained by the issuer and used to record the payment by cheque
V) PAY-IN-SLIP: It is a form available from a bank and is used to deposit money in the bank. Each pay-in-
slip has a counterfoil which is returned to the depositor duly stamped and signed by the cashier of the bank.
The counterfoil is used as the source document for recording the deposits.

VI) DEBIT NOTE: Debit note is a document which is issued to record the transactions for return of goods to
the supplier. It shows that in the books of the purchaser, the Seller's Account has been debited in respect of
goods returned to him. It is prepared in duplicate.
DEBIT NOTE
CHUNNU LAL BAKERY
123, LAL BUNGLOW, KANPUR - 9
No. 244 Date: 25th May,2024
Amount
(₹)
Against: M/s SHUBDEEP FLOUR MILL,
GANDHIGRAM KANPUR 7,000
Goods Returned as per Delivery Challan No. 1225
7,000
 TOTAL
(Rupees Seven Thousand Only)
CHUNNULAL
MANAGER

VII) CREDIT NOTE: When goods are received back from a customer, credit note is issued to the customer
indicating that the Customer's Account has been credited in seller's books. It is a document which is prepared
in duplicate. The original copy is sent to the purchaser and second copy is retained by the seller to record the
transaction in his books.
CREDIT NOTE
CHUNNU LAL BAKERY
123, LAL BUNGLOW, KANPUR - 9
No. 724 Date: 25th May,2024
Amount
(₹)
Against: M/s MEHUL BAKERY, SHYAM NAGAR
Goods Returned as per Delivery Challan No. 1622 450
TOTAL 450
(Rupees Four Hundred Fifty Only)
CHUNNULAL
MANAGER