Which of the following is a source document?
Question
Which of the following is a source document?
Options
The correct answer is D.
Explanation:
What is a source document?
Whenever a business transaction take place, involving sales or purchases, receiving or paying money, or owing or being owed money, it is usual for the transaction to be recorded on a document. These documents are the source of all information recorded by a business. Examples include sales order, purchase order, invoice, credit note, etc.
The other options are books of prime entry. The details on these source documents need to be summarized, as otherwise the business might forget to ask for some money, or forget to pay, or even accidentally pay some twice. Books of prime entry are books in which we first record transactions. E.g. sales day book, purchase day book, cash book, petty cash book, journal, etc.
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What is a source document?
Whenever a business transaction take place, involving sales or purchases, receiving or paying money, or owing or being owed money, it is usual for the transaction to be recorded on a document. These documents are the source of all information recorded by a business. Examples include sales order, purchase order, invoice, credit note, etc.
The other options are books of prime entry. The details on these source documents need to be summarized, as otherwise the business might forget to ask for some money, or forget to pay, or even accidentally pay some twice. Books of prime entry are books in which we first record transactions. E.g. sales day book, purchase day book, cash book, petty cash book, journal, etc.