Theory question 101
Source Documents(a) What is a source document?
(b) List six types of source documents.
(c) State three uses of subsidiary books.
Show the model answer
(a) An original document that gives evidence of a business transaction and its details; it is the basis for entries in the books.
(b) Any six: sales invoice; purchase invoice; receipt; credit note; debit note; cheque counterfoil (stub); bank pay-in slip; petty cash voucher; bank statement; payment voucher; stores voucher.
(c) Any three: they are the first record of transactions from source documents; they group similar transactions so that only totals are posted to the ledger; they give more detail about transactions than the ledger; they reduce the work and errors in the ledger; they allow division of work among clerks; they serve as back-up records.
Name real documents a business gives or receives.