Meaning of source documents :

Source documents can be defined as original records like receipts and invoices that prove financial transactions. They are used to verify and record transactions in bookkeeping.

1. They serve as proof that a financial transaction took place.


2. Used to keep track of transactions during accounting periods.


3. They create a document trail for confirming financial records in the course of an audit.


4. Ensure that the reports meet legal and tax requirements.


5. Assist in reviewing and analyzing a company’s financial activities.

1. Receipts: Proof of payment made by a customer.


2. Invoices: Bills sent to customers for goods or services provided.


3. Bank Statements: Records of all transactions in a bank account.


4. Purchase Orders: Requests made to suppliers for products or services.


5. Sales Orders: Records of customer orders for products or services.


6. Credit Notes: Documents issued for returns or refunds.


7. Cheques: Written orders directing a bank to pay a specific amount.