Edumarz

BUSINESS TRANSACTION

Facebook
WhatsApp
Twitter
LinkedIn

 AND SOURCE DOCUMENT

 -Ankit Lal Karn, ACW Accounts, Edumarz.

A business transaction is a two-way exchange of 

economic consideration between parties. 

For example – when you buy a mobile phone, the seller gives you a cash memo along with the mobile, and in exchange, you pay the amount.

 

  • The document which evidences the financial transaction is called the source document such as cash memo, voucher, sales bill, pay- in- slip, cheque, salary slip, etc.

 

 

  • It’s a give-and-take process.

  • Generally, petty expenses do not have an evidencing

  • source document.

  • In such a case voucher may be prepared, voucher must be signed by the authority.

 

Preparation of accounting voucher:-

  • There are various accounting vouchers such as cash vouchers, debit vouchers, credit vouchers, journal vouchers. 

  • Accounting vouchers don’t have a prescribed format.

  • If it is prepared using computerized software , it must  contain special code assigned

 

Essentials of accounting vouchers

  • If it’s written manually, it must be on good-quality paper.

  • The firm’s name must be there on the top.

  • The authorized person must sign the voucher.

  • Date must be given for the transaction.

  • Account wise description must be there.

  • The amount must be written in figures.

  • It must be in a serial order.

Leave a Reply