Lesson
Learn what proof is used before recording a transaction in accounting books.
Understand how bills, invoices, receipts, and vouchers help accountants record entries correctly.
Concept explanation
A source document is the original proof of a business transaction.
Before recording a transaction, the accountant should have proof that the transaction actually happened.
If a shop buys goods, the purchase bill or invoice is proof.
If rent is paid, the rent receipt is proof.
If cash is deposited into bank, the bank slip is proof.
Simple line: Source document = proof of transaction.
They prove that a transaction happened.
They help us know the correct amount.
They show the date of transaction.
They show the party name, such as customer, supplier, or landlord.
They help avoid fake or wrong entries.
They help prepare correct journal entries.
They help check records later during audit or review.
Riya runs a small stationery shop.
One day, she buys notebooks from a supplier for Rs.10,000.
The supplier gives her a bill.
She sells pens to Amit for Rs.2,000.
She gives Amit a sales invoice.
She pays shop rent Rs.3,000.
The landlord gives her a rent receipt.
She deposits Rs.5,000 into bank.
The bank gives her a deposit slip.
Can Riya record all these transactions from memory only? No. She should use proof.
The bill, invoice, receipt, and bank slip help her record transactions correctly.
Cash Memo: used when goods are bought or sold for cash. Example: Riya sells notebooks for cash Rs.500 and gives a cash memo.
Invoice or Bill: used when goods are bought or sold, especially on credit. Example: Riya buys goods from a supplier for Rs.10,000 and receives an invoice.
Receipt: proof that money has been received. Example: the landlord gives a rent receipt after receiving rent.
Bank Slip or Deposit Slip: proof of money deposited into bank. Example: Riya deposits Rs.5,000 into bank and receives a deposit slip.
Cheque Counterfoil: proof that a cheque was issued. Example: Riya pays supplier by cheque and keeps the cheque counterfoil.
Debit Note: used when goods are returned to supplier. Example: Riya returns damaged goods to supplier and prepares a debit note.
Credit Note: used when customer returns goods to the business. Example: Amit returns goods to Riya, and Riya issues a credit note.
A voucher is an accounting document prepared using the source document.
Source document is the proof.
Voucher is the accounting record or authorization made from that proof.
Example: Riya pays rent Rs.3,000 and receives a rent receipt.
Based on that receipt, the accountant prepares a payment voucher.
Simple line: Voucher = accounting support prepared from proof.
Payment Voucher: used when business pays money. Example: paid rent Rs.3,000.
Receipt Voucher: used when business receives money. Example: received cash from customer Rs.5,000.
Purchase Voucher: used for purchase of goods. Example: bought goods from supplier Rs.10,000.
Sales Voucher: used for sale of goods. Example: sold goods to customer Rs.8,000.
Journal Voucher: used for non-cash or adjustment entries. Example: depreciation on furniture Rs.2,000.
Contra Voucher: used for cash and bank transfer. Example: deposited cash into bank Rs.5,000.
Documents tell the accountant what happened.
They show the amount, date, and party name.
They help identify the accounts affected.
They reduce guessing.
A good journal entry starts with clear proof.
Simple comparison
| Source Document | Voucher |
|---|---|
| Original proof of transaction | Accounting document prepared from proof |
| Usually received or given at transaction time | Usually prepared for accounting record |
| Examples: bill, receipt, invoice | Examples: payment voucher, receipt voucher, journal voucher |
| Shows transaction evidence | Helps record transaction in books |
Memory line: Source document proves the transaction. Voucher supports the accounting entry.
Visual flow
Business transaction
Source document
Voucher
Journal entry
Ledger
Trial balance
Final accounts
Solved examples
Example 1
Source document: Cash memo or purchase bill. Voucher: Purchase voucher / payment voucher. Accounts affected: Purchases and Cash.
The bill proves goods were purchased.
The voucher helps the accountant record the entry correctly.
Example 2
Source document: Rent receipt. Voucher: Payment voucher. Accounts affected: Rent and Cash/Bank.
The receipt proves rent was paid.
The payment voucher supports the accounting record.
Example 3
Source document: Sales invoice. Voucher: Sales voucher. Accounts affected: Amit/Debtor and Sales.
The invoice proves the credit sale.
Amit becomes the customer who has to pay later.
Example 4
Source document: Bank deposit slip. Voucher: Contra voucher. Accounts affected: Bank and Cash.
The deposit slip proves cash went into the bank.
A contra voucher supports the cash-bank transfer.
Example 5
Source document: Debit note. Voucher: Purchase return voucher / journal voucher. Accounts affected: Supplier and Purchase Return.
The debit note proves goods were returned to the supplier.
The voucher helps record the purchase return.
Avoid these
Practice prompts
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Now that you understand transaction proof, learn how accounts are debited and credited.
Continue to Rules of Debit and Credit