Please Help me in this Question 3rd and 4th
Answers
Q3. Most Commonly used Source Documents
(1) Cash Memo: Cash memo is prepared while selling the goods for cash. It contains detail of good sold viz., date, quantity of goods sold, rate amount received. It acts as an evidence for the sale of goods for cash. The office copy of cash memo is an evidence for the business entity that goods has been sold for cash.
(2) Invoice or Bill: An invoice or bill prepared by the seller of goods when he sells goods to buyer on credit. It is prepared in duplicate. It contains detail in respect of name of the name of the buyer, detail of goods sold, rate and amount of sales. The original copy of the sales invoice is sent to the buyer while the duplicate copy is retained by the seller of goods as an evidence of sale for recording the transaction in the books of accounts. From the buyer’s point of view, it is a purchase bill while from the seller’s point of view, the duplicate copy preserved by the seller of goods acts as a sales invoice.
(3) Receipt: The receipt is issued to the customer when cash is received from him. Thus, receipt is an acknowledgment of cash received from the customer. It is prepared in duplicate. The original copy of receipt is issued to the customer while duplicate copy is kept for reference in future. The receipt contains detail concerning date, amount, name of party and nature of payment. The receipt is prepared by the cashier but signed by the authorized signatory only.
(4) Pay-in-Slip: Pay-in-slip is used to deposit either cash or cheque of customer for collection of payment in our bank account. It is available from the bank. It has two portions, namely pay-in-slip and counterfoil which is returned by the bank to the customer after acknowledgement by the cashier. The counterfoil of pay-in-slip is preserved by the customer which is an evidence that cash/cheque has been deposited in the bank.
(5) Cheque: Bank supplies cheque forms to the account holders for withdrawing cash payment from their accounts. The name of the party to whom payment is to be paid is written after ‘Pay.’ The amount payable is written both in figure as well as in words. It should be dated and signed by the account holder. Each cheque is either having a counterfoil or pages are provided in the cheque book for writing the detail of each cheque. This counterfoil is preserved and acts as a source document. A cheque is drawn by the account holder of the bank directing is to pay a specific amount to the named person or to the bearer on demand.
(6)Debit Note: A ‘debit note’ is a source document. It is prepared and sent by the buyer of the goods to the seller of goods stating that his account has been debited by the buyer of the goods with the specified amount. The reason for preparing debit note may be return of defective goods or goods is not as per sample, goods have been overvalued by the seller or less discount is allowed by the seller, etc. the effect of debit note will be that the indebtedness of the buyer is reduced to the extent of stated amount. It is prepared in duplicate.
(7)Credit Note: The credit note is similar to a debit note with the only difference that it is prepared by the seller of goods when he receives the sold goods back from the buyer of the goods or for allowing more discount to the buyer. When the seller of goods received back the sold goods from the buyer, he credits the account of the buyer and intimate the buyer through the ‘credit note’.
I know the answer is quite lengthy, but trust me you can get all the points from here, also both the answers provided to you are taken from TS Grewal.Q4 was given in T.S. Grewal class 11 book as an illustration.
hope I was able to answer your question
