- Source document – a written document that provides details of a transaction and the evidence that the transaction has taken place. All accounting entries are based on information derived from these source documents.
- Source documents are important to businesses – to provide evidence or proof that a transaction has occured;used as part of a process to record information into the books of original entry and are required for audit purposes.
- Good features of source documents – date when transaction took place;names and addresses of the parties concerned namely the buyer and seller;nature of the transaction ie description of the goods or services; terms and conditions of the transaction ie trade discount, cash discount, delivery details and an authorised signature.
- Invoice: to inform buyer of the amount to pay for goods&services supplied by the seller
- Credit note: to correct an overcharge in the invoice
- Debit note: to correct an undercharge in the invoice
- Payment voucher: as evidence of payment to a named party
- Cheque counterfoil: as record of amount paid on a particular numbered cheque to the payee
- Receipt: To acknowledge money received
- Bank Statement: Summary of monthly transactions of current account holders with the bank.