source document is an evidence of a transaction or an event. recording of transaction is based on source document. Give any two name of such source documents.
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Source document is an evidence of a transaction or an event. Recording of transaction is based on source document. A source document is also known as Supporting Voucher as it is an evidence in support of a business transaction. Source document is the legal evidence of transactions and acts as a documentary evidence. It is the basis of audit and tax assessment.
❍ Any two name of source documents are :-
- [1] Cash Memo : When goods are sold in cash, a statement is issued by the creditor or seller signifying the sales effected by him that contains the details of the transaction. This statement is known as Cash Memo. It is an example of souce document.
- [2] Invoice or Bill : When goods are sold on credit, the creditor or seller issues a document to the debtor or purchaser that contains the details regarding the credit transaction of sale. This document is known as Invoice or Bill. It is an example of source document.
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