CBSE Class 11 Accountancy Source Documents Worksheet Set A

1. Source Documents It is a written document which contains details of the transactions prepared at the time, it is entered into. It is also referred to as supporting document. It is of prime importance, as in the books of accounts, transactions are recorded on the basis of an evidence.
These evidences being the basis of recording entry are known as source documents. e.g. bills of purchases, invoices for sales, debit and credit notes, etc. They are as follows
(i) Cash Memo It is prepared by the seller, for goods sold against cash. Cash memo acts as an evidence for both the seller and purchaser of goods.
For the purchaser, for goods purchased against cash and for the seller, for sales made for cash. It contains details of goods sold, quantity, rate, total amount received, date of transactions, etc.
(ii) Invoice or Bill It is prepared by the seller, for goods sold against credit. It contains details such as party to whom goods are sold, quantity of goods sold and the total sale amount. One prepares an invoice but receives a bill. These two terms are interchangeable and mean the same thing.
(iii) Pay-in-slip It is used for depositing cash or cheques into bank. It is a form which is available from a bank, having a counterfoil, which is returned to the depositor with cashier’s signature, as receipt. The counterfoil gives details regarding the date and the amount (in cash or cheque) deposited.
(iv) Cheque As per Negotiable Instrument Act, “A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable, otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in electronic form.”
(v) Debit Note A debit note is made out evidencing that a debit has been made to the account of the party named in the debit note. It details the reason for the debit. The effect of a debit note is that the indebtedness to the supplier is reduced or, if the account is already settled, goods can be purchased further without payment.
(vi) Credit Note A credit note is made out evidencing that credit has been granted to a debtor. The effect of a credit note is that the amount of the customer’s indebtedness is reduced or, if it is already settled, to enable the customer to purchase goods to the value of credit without further payment.

2. Vouchers It is a document evidencing a business transaction. A voucher detailing the accounts that are debited and credited is prepared on the basis of source documents such as cash memo, invoice or bill, receipt, pay-in-slip, cheque, debit and credit notes, etc.

3. Types of Vouchers Basically, vouchers may be classified into categories as follows
(i) Supporting Vouchers These are also known as source vouchers or source documents. These are the documents which come into existence when a transaction is entered into.
(ii) Accounting Vouchers Accounting vouchers are the secondary vouchers.
These vouchers are a written document prepared on the basis of supporting vouchers for accounting and recording purposes, prepared by an accountant and countersigned by an authorised person. These accounting vouchers are prepared for cash as well as non-cash transactions.

Accounting vouchers may be classified into two categories as follows

Cash Vouchers Vouchers which are prepared at the time of receipt or payment of cash are known as cash vouchers. It includes receipt and payment through cheques.
Cash vouchers further can be of the following two types
- Debit Voucher These are prepared to record the transactions involving cash payments, i.e. when payment is made.
- Credit Voucher These are prepared to record the transactions involving cash receipts, i.e. when cash is received.
Non-cash Vouchers or Transfer Vouchers The vouchers which are prepared for transactions not involving cash, i.e. non-cash transactions, are known as non-cash vouchers or transfer vouchers.

(iii) Complex Voucher/Journal Voucher Transactions with multiple debits and multiple credits are called complex transactions and the accounting vouchers prepared for such transaction is known as complex voucher/journal voucher.
(iv) Compound Voucher Vouchers which record transactions with multiple debits/credits and one credit/debit are called compound vouchers.

Compound vouchers are of two types
Debit Voucher Voucher showing transactions that contains multiple debits and one credit is called debit voucher. Credit Voucher Voucher showing transactions that contains multiple credits but one debit is called credit voucher.

4. Preparation of Vouchers There is no set format of an accounting voucher. The design of the accounting vouchers depends upon the nature, requirement and convenience of the business.
To distinguish various vouchers, different colour papers and different fonts of printing are used.

5. Accounting Equation A mathematical expression which shows that the assets and liabilities of a firm are equal is known as accounting equation. An accounting equation is based on dual aspect concept which states that every transaction has two aspects debit and credit, for every debit there is an equal amount of credit and vice-versa. Accounting equation signifies that the assets of a business are always equal to the total of its liabilities and capital (owner’s equity).

Accounting equation may be expressed as
Total Assets = Total Equities
   or
Assets = Internal Equity + External Equity
   or
Assets (A) = Capital (C) + Liabilities (L)
The above equation can also be presented in the following forms
Capital = Assets – Liabilities
   or
Liabilities = Assets – Capital

6. Effects of Transactions on Accounting
Equation Practical steps involved in developing an accounting equation
Step 1. Ascertain the variables (i.e. assets, liabilities or capital) of an equation affected by a transaction.
Step 2. Find out the effect (in terms of increase or decrease) of a transaction on the variables of an equation.
Step 3. Show the effect on the appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.

CBSE Class 11 Accountancy Chapter 3 Source Documents MCQs

Question. Voucher which records a transaction that entails multiple debits / credits and one credit / debit is called:
a) Debit voucher
b) Credit voucher
c) Compound voucher
d) Journal voucher
Answer. C

Question. A document which provides evidence of the transaction is called:
a) Journal
b) Voucher
c) Source document
d) None of the above
Answer. D

Question.Which concept is followed for preparing vouchers?
a) Entity concept
b) Cost concept
c) Accrual concept
d) Objectivity concept
Answer. D

Question. Chronological order of valid voucher would be:
a) Date, Credit account, Voucher Number, Debit account, Narrative, Amount
b) Voucher Number, Date, Debit account, Credit amount, Amount, Narrative
c) Date, Debit account, Credit account, Amount, Narrative, voucher number
d) Voucher Number, Amount, Date, Debit Account, Credit account
Answer. B

Question. Voucher relates to:
a) Cash receipt
b) Cash payment
c) Credit transaction
d) All of the above
Answer. D

Question. Transaction with one debit and one credit and the accounting vouchers prepared for such transactions is known as:
a) Compound voucher
b) Debit voucher
c) Transfer voucher
d) Credit voucher
Answer. C

Question. Voucher is kept for evidence according to which concept:
(a) Cost concept
B Matching concept
C Revenue concept
D Objectivity concept
Answer. D

CBSE Class 11 Accountancy Chapter 3 Source Documents Fill in The Blanks

Question. Vouchers are prepared on the basis of ______________ .
Answer. Source Documents

Question. Written evidences which become basis of recording business transactions is ___________.
Answer. Source Documents

Question. ____________ voucher is prepared to record Cash purchases.
Answer. Debit

Question. Credit Vouchers are prepared to record cash ___________.
Answer. Receipts

Question. All credit transactions are recorded in the books on the basis of ___________ vouchers.
Answer. Transfer

Question. A trader purchased 10 chairs @ Rs 500 each, the __________ voucher which is prepared will show Rs _________.
Answer. Debit / Rs 5,000

Question. A trader purchased goods for Rs 60,000 from X and Company. He paid Rs 40,000 in cash. The amount that would be recorded in debit voucher is Rs _________.
Answer. Rs 40,000

CBSE Class 11 Accountancy Chapter 3 Source Documents True And False

1. Vouchers are prepared on the basis of Source Documents. [True]
2. Written evidences which become basis of posting business transactions in ledger are Vouchers. [False]
3. Credit voucher is prepared to record Cash purchases. [False]
4. Credit Vouchers are prepared to record cash payments. [False]
5. All credit transactions are recorded in the books on the basis of Transfer vouchers. [True]
6. A trader purchased 10 chairs @ Rs 500 each, the transfer voucher which is prepared will show Rs 5,000. [False]
7. A trader purchased goods for Rs 60,000 from X and Company. He paid Rs 40,000 in cash. The amount that would be recorded in debit voucher is Rs 40,000 . [True]
8. Transactions are recorded in books of original entry on the basis of voucher and not on the basis of source documents. [True]

CBSE Class 11 Accountancy Chapter 3 Source Documents Match The Following

Question. 
1. Voucher which records a transaction entails               a) Debit voucher
multiple debits/credits is called
2. Voucher which have cash value and they are             b) Compound voucher
used to transfer money from one bank account
to another bank
3. Paper or electronic record of a credit transaction        c) Journal voucher
through bank card
4. Document which is stored the essential information   d) Credit voucher
about and accounting transaction
Answer. (1.b,2.a,3.d,4.c)

Question. 
1. voucher are prepare on the basis of                 a) Receipt
2. credit voucher are prepared to record cash      b) Voucher
3. a document which provides evidences
of the transaction
                                                                              c) Source document
Answer. (1.c,2.a,3.b)

Question. 
1. A document prepared by the seller when        a) Pay in slip
goods are sold for cash.
2. A document prepared by the seller when        b) Debit note
goods are sold for Credit.
                                                                            c) Cash memo
                                                                            d) Invoice or bill
Answer. (1-c, 2-d)

Question. 
1. A document used to deposit cash            a) Pay in slip
or cheque into the bank.
2. A document in writing drawn upon a        b)Debit note
specified bank with which the account
is held and is payable on demand.
                                                                     c) Cheque
                                                                     d) Invoice or bill
Answer. (1-a, 2-c)

Chapter Name: Source Documents

1 What are source documents?

2 Write short notes on the following:

(a) Cash Memo

(b) Invoice

(c) Receipt

(d)Pay-in-Slip

(e) Cheque

(f) Debit Note

(g) Credit Note

(h) Accounting voucher

(i) Cash voucher

(j) Debit Voucher

(k) Credit voucher

(l) Transfer voucher

3 Prepare the vouchers from the following:

2015
July 1 Received cash from Susanna & Co on account vide cash receipt No.777 Rs.12,000
July 09 Commission received vide cash receipt No.753
July 18 Sold ladies bags for cash vide Cash memo nos. 507-510
July 27 Sold old furniture vide Cash Memo No.1340.

4 Make a project on Source documents through collecting the specimen of the following:

(a) Cash Memo                (b) Invoice        (c)Receipt            (d)Pay-in-Slip
(e)Cheque                       (f) Debit Note   (g) Credit Note      (h) Transfer Voucher
(i) Debit voucher and        (j) Credit Voucher

Please click on below link to download CBSE Class 11 Accountancy Source Documents Worksheet Set A