SOURCE OF DOCUMENT

SOURCE OF DOCUMENT

                These are documents with which a book-keeper records the monetary value of all transactions.

TYPES OF SOURCE DOCUMENT.

1. CASH RECEIPT: This is used to record payment of only cash transaction.

2. INVOICE: Is a document that the seller of products or services issues to the buyers.

3. CASH REGISTER TAPE: Is a machine that is used for calculations and printing of cash transaction details.

4. DEBIT NOTES: This is a document issued by a seller to correct an error made when the buyer is undercharged i.e. increase in the amount of money the buyer is owing.

5. CREDIT NOTE: This is issued to correct an overcharge in an invoice. i.e. sent to the buyer to indicate a decrease in the amount owned.

6. CHEQUE: Is a written instruction to a bank to pay a specified amount of money to a named person on his or her order.

                                PARTIES TO A CHEQUE

1.            DRAWER: This is the owner of the account.

2.            DRAWEE: This is the bank that is requested to pay the money.

3.            PAYEE: This is the person whose name is written on the cheque to collect the money.