1. Cash Note:
Sales and purchases are the main characteristics of any company. To record cash sales and cash purchases, cash receipts serve as source documents. The cash document is a source document in which all transactions related to sales or cash purchases must be recorded.
When the goods are purchased by a trading company on the basis of cash, then the company receives cash note and when a business company sells goods, it gives cash note, in which all the details of the transaction related to the purchase or sales namely. Number or quantity bought / sold, price, discount received or allowed and sales tax collected or deposited. On the basis of cash notes, these transactions are recorded in the account book. In auditing, the auditor's primary duty is to verify the cash book with reference to cash receipts.
2. Invoice :
The invoice or bill records the credit transactions related to the sale or purchase. This is prepared when a firm buys or sells the goods on credit. At the time, when the goods are sold by the company on credit, the sales invoice is prepared in which all details of credit sales know. Quantity, rate and total quantity are mentioned, etc.
Generally, invoices are made in duplicate, the original (original) copy is sent to the buyer and the other is kept by the business company for registration and future reference. Similarly, when goods are purchased on credit, the supplier prepares the invoice in duplicate. When the main copy is received by the buyer, it becomes an invoice.
The receipt is evidence of making payment on account of any business transaction. This source document is prepared to show proof of giving cash to the party (who receives the cash) on account of any commercial transaction. At least two copies of any receipt are made.
The original copy is prepared to be given to the party making the payment and another copy is kept for registration. The details about the commercial transaction in account from which the cash is received viz. The date, quantity, name of the party and the nature of the payment, etc., are given in this document of origin.
4. Slip payment:
This document is intended to provide evidence that on a given date, a specific amount has been deposited in the bank. When a depositor deposits money into the bank account, he fills out a form provided by the bank that contains the information about the date, the amount to be deposited and the name of the depositor, etc.
The bank secretary signs, seals the pay counter on the slip and returns it to the depositor. Usually, big companies get the full heap of pay-in-slips and get them all linked in a book. The payroll counter on the cheque becomes a source document, which acts as evidence for the customer to record this transaction in the account books.
A cheque in an unconditional order, drawn up on a specific wish, signed by the manufacturer, which orders the banker to pay a certain sum of money only to the order of a person or the bearer of the instrument. Law on Negotiable Instruments, 1881.
A cheque is an instrument drawn from a banker and payable on demand. The bank issues a flyer containing the cheque forms to their account holders. The digits mentioned at the bottom of the cheques indicate the code "State", "Bank", "Branch", "Cheque" and "Account type", respectively.
Through cheques, payment can be made to a specific person by writing the name of the party after the words "Payment" and removing the word "bearer" with a line printed on the cheque. In this case, the cheque is called an order cheque. To avoid any fraud, cheques are crossed by drawing two parallel cross lines through the cheque. Sometimes the words '& Co', 'A / C Only Payable', 'Not Negotiable' or 'Name of the Bank' are written within these lines.
In that case, the cheque becomes a cross cheque. Payment against cross cheque can not be received simply by producing the cheque. The cross cheque must first be deposited in the bank account of the account holder in whose favor the cheque is withdrawn and only through your account, the payment can be withdrawn.
Payment can also be made to anyone who wears and presents the cheque. In that case, the cheque is called the bearer's cheque. A cheque is signed by the drawer mentioning the amount and name of the party to whom the payment should be made. The interested person can get it encashed directly. The account holder can also withdraw the money from his account - by typing the word "Self".
6. Debit note:
A debit memo is a document that shows that the business enterprise has raised the charge against the party to whom this document is sent with respect to any business transaction other than the sale of credit. The commercial company can make a debit note against the supplier for an amount that must be recovered from it, when the company returns some goods that are defective in nature or not according to specifications.
A debit note can also be prepared in case of overpayment to any party. This document mentions all details about the date and amount of the transaction, the name of the party whose account is debited together with the reason for debiting your account.
7. Credit Note:
A credit note is a document that shows that the company has given the credit to the party to whom this document is sent in respect of any business transaction other than the purchase of credit. When a company gets back the goods sold before then it makes a credit note in favor of the buyer showing that their account has been credited to the company's books.
A credit note can also be prepared in case of less payment to any party. This document mentions all details about the date and amount of the transaction, the name of the party whose account is credited along with the reason for crediting your account. To distinguish it from a debit note, it is commonly prepared in red ink.
Documents prepared for the purpose of recording business transactions in account books are known as bonds. The voucher is prepared on the basis of the origin documents. To record business transactions in account books, source documents are further analyzed and the conclusion is drawn as to which account should be charged and which account should be credited. The document in which this conclusion is written is known as an accounting voucher or voucher.
(I) It's a document.
(Ii) Prepared by analyzing the source documents.
(Iii) Contains the decision on the accounts to be charged and credited.
(Iv) Helps to record an accounting record in account books.
(V) It is prepared and signed by the accountant and is also endorsed by the authorized signatory of the company.