Question

Collection of all types of documents use in bank and office

Answer 1

1. Cash Memo:

Sales and purchases are the main features of any business enterprise. For recording cash sales and cash purchases, cash memos serve as source documents. Cash memo is a source document in which all transactions pertaining to cash sales or purchases are to be recorded.

When goods are purchased by a business enterprise on cash basis then the firm receives cash memo and when a business enterprise sells goods, it gives cash memo, in which all details of the transaction relating to the purchase or sales viz. number or quantity purchased/sold, price, discount received or allowed and sales tax collected or deposited are provided. On the basis of cash memos, these transactions are then recorded in the book of accounts. In audit, the foremost duty of the auditor is to verify the cash book with reference to the cash vouchers.



2. Invoice and Bill:

Invoice or bill records the credit transactions related to sale or purchase. This is prepared when a firm purchases or sells the goods on credit. At the time, when the goods are sold by the business enterprise on credit, sales invoice is prepared in which all details of the credit sales viz. the quantity, rate and total amount etc. are mentioned.

Usually, invoices are made in duplicate, the main copy (original) is sent to the purchaser and the another is kept by the business enterprise for record 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 purchaser, it becomes a bill.


3. Receipt:

Receipt is an evidence of making the payment on account of any business transaction. This source document is prepared for showing the proof of giving any cash to the party (who receives the cash) on account of any business transaction. At least two copies are made of any receipt.

The original copy is prepared for giving it to the party who makes the payment and another copy is kept for record. The details about the business transaction on account of which the cash is received viz. date, amount, name of the party and the nature of payment etc. are given in this source document.


4. Pay in Slip:

This document serves the purpose of providing an evidence that on particular date, a specific amount has been deposited in the bank. When a depositor deposits money in the bank account, he fills up a form provided by the bank containing the information about the date, amount to be deposited and the name of the depositor etc.

The bank clerk signs, stamps the counterfoil of the pay in slip and returns it to the depositor. Usually, the large business enterprises obtain the complete bunch of pay-in-slips and get them all bound in a book. The counterfoil of the pay in slip becomes a source document, which acts as an evidence for the customer to record this transaction in the books of accounts.


5. Cheque:

A cheque in an unconditional order, drawn upon a specified hanker, signed by the maker, directing the banker to pay on demand a certain sum of money only to the order of a person or the bearer of the instrument. -Negotiable Instruments Act, 1881

A cheque is an instrument drawn upon a banker and payable on demand. The bank issues a booklet containing cheque forms to its account holders. Digits mentioned on the bottom of the cheques denote code of ‘State’, ‘Bank’, ‘Branch’, ‘Cheque’ and ‘Type of Account’ respectively.

Through cheques, payment can be made to a specific person by writing the name of the party after the words ‘Pay’ and by striking off the word ‘bearer’ with a line printed on the cheque. In this case cheque is called an order cheque. To avoid any fraud, cheques are crossed by drawing two parallel transverse lines across the cheque. Sometimes the words ‘& Co’, ‘A/C Payee Only’, ‘Not Negotiable’ or ‘Name of the Bank’ is written within these lines.

In that case, cheque becomes a crossed cheque. Payment against crossed cheque cannot be received simply by producing the cheque. Crossed cheque has to be first deposited in the bank account of the account-holder in whose favour cheque is drawn and only through his account, payment can be withdrawn.


6. Debit Note:

A debit note is a document which shows that the business enterprise has raised debit against the party to whom this document is sent in respect of any business transaction other than the credit sale. Business enterprise may make a debit note against the supplier for an amount which is to be recovered from him, when the business enterprise returns some goods which are defective in nature or not as per specifications.


7. Credit Note:

A credit note is a document which shows that the business enterprise has given the credit to the party to whom this document is sent in respect of any business transaction other than credit purchase. When a business enterprise receives back the goods sold earlier then it makes a credit note in favour of the purchaser showing that his account has been credited in the books of business enterprise.