Origin of Transactions &
Preparation of Vouchers
Understand how every accounting transaction originates from a source document, learn all types of accounting vouchers, and see how vouchers are prepared from real business transactions — a key practical skill for CBSE and CA Foundation.
6Voucher Types
20MCQs
20Quiz Qs
FreeAlways
📌 Why This Chapter Matters
The Starting Point of Every Entry
Before a transaction is recorded in the Journal, it must originate from a source document and be supported by a voucher. This chapter explains what these documents are, how they are classified, and how accounting vouchers are prepared from them. It is essential for practical accountancy and is directly tested in board exams.
1. Meaning of Source Document
A Source Document is the original written evidence that a business transaction has taken place. It is the proof on which the accountant relies to make an entry in the books. Every journal entry must be supported by a source document — without it, no entry should be passed.
Examples of Source Documents: Cash Memo, Invoice / Bill, Receipt, Pay-in-slip, Cheque, Debit Note, Credit Note, Salary Slip, Wage Sheet, Bank Statement, Petty Cash Voucher.
Importance of Source Documents
Provide written proof that a transaction actually occurred
Form the basis for preparing accounting vouchers
Help in detecting and preventing errors and frauds
Serve as legal evidence in case of disputes
Facilitate audit and internal control
Enable accurate posting to books of accounts
2. Types of Source Documents
1
Cash Memo
Issued by the seller when goods are sold for cash. The buyer receives the cash memo as proof of purchase. Example: A supermarket bill. Used for Cash Sales entry.
2
Invoice / Bill
Issued by the seller when goods are sold on credit. Contains details of goods, quantity, price, GST, and total amount. Used for credit purchases and credit sales entries.
3
Receipt
Issued by the receiver of cash as acknowledgement of payment received. Example: Rent receipt, fee receipt. Used as proof for cash payment/receipt entries.
4
Debit Note
Prepared by the buyer when goods are returned to the supplier (purchase return). Informs the supplier that his account has been debited. Basis for Purchase Return entry.
5
Credit Note
Prepared by the seller when goods are returned by the customer (sales return). Informs the customer that his account has been credited. Basis for Sales Return entry.
6
Pay-in-slip / Cheque Counterfoil
Bank pay-in-slip is filled when cash/cheque is deposited into bank. Cheque counterfoil is retained when a cheque is issued. Both are source documents for bank transactions.
Debit Note vs Credit Note — Memory Trick:
Debit Note → Buyer sends it → "I am debiting YOUR account in my books" (purchase return)
Credit Note → Seller sends it → "I am crediting YOUR account in my books" (sales return)
Debit Note → Buyer sends it → "I am debiting YOUR account in my books" (purchase return)
Credit Note → Seller sends it → "I am crediting YOUR account in my books" (sales return)
3. Meaning of Accounting Voucher
An Accounting Voucher (also called an Accounting Voucher or simply Voucher) is a written document prepared by the accountant on the basis of a source document. It contains the journal entry, the accounts to be debited and credited, the amounts, and is authorised by a responsible person before the entry is recorded in the books.
Source Document → Accounting Voucher → Journal → Ledger
This is the flow of every accounting transaction. The voucher sits between the source document and the journal.
This is the flow of every accounting transaction. The voucher sits between the source document and the journal.
Contents of an Accounting Voucher
| Element | Details |
|---|---|
| Name of the firm | Name and address of the business |
| Voucher number | Serial number for reference and filing |
| Date | Date of the transaction |
| Type of voucher | Cash / Bank / Journal / Debit / Credit / Contra |
| Account details | Names of accounts Dr. and Cr. with amounts |
| Narration | Brief description of the transaction |
| Signature of preparer | Person who prepared the voucher |
| Signature of authoriser | Manager/owner who approves the entry |
| Source document reference | Bill no., receipt no., cheque no. etc. |
4. Types of Accounting Vouchers
Accounting vouchers are classified based on the nature of the transaction. There are six main types:
📈 Type 1 — Cash Payment Voucher
Prepared when a payment is made in cash. Cash A/c is always Credited (cash goes out). Used for: salary paid, rent paid, petty expenses, purchases for cash.
Cash Payment Voucher
Voucher No: CPV-001 | Date: 01 April 2026
Firm NameM/s Expert Traders, Delhi
TransactionSalary paid to staff for March 2026
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Salary A/c | Dr. | 45,000 |
| To Cash A/c | Cr. | 45,000 |
| Total | 45,000 | |
NarrationSalary paid to 3 staff members for March 2026 in cash
Prepared by
Checked by
Authorised by
Cash Payment Voucher → Cash A/c is always on the Credit side. The account receiving the benefit is on the Debit side.
📈 Type 2 — Cash Receipt Voucher
Prepared when cash is received by the business. Cash A/c is always Debited (cash comes in). Used for: cash sales, rent received, received from debtors, capital introduced.
Cash Receipt Voucher
Voucher No: CRV-001 | Date: 05 April 2026
Firm NameM/s Expert Traders, Delhi
Received fromRamesh Kumar (Debtor)
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Cash A/c | Dr. | 75,000 |
| To Ramesh Kumar A/c | Cr. | 75,000 |
| Total | 75,000 | |
NarrationCash received from Ramesh Kumar in full settlement of dues
Prepared by
Checked by
Authorised by
Cash Receipt Voucher → Cash A/c is always on the Debit side. The account giving the benefit is on the Credit side.
📈 Type 3 — Bank Payment Voucher
Prepared when payment is made through cheque or online transfer. Bank A/c is always Credited. Used for: payments to creditors by cheque, online purchases, bank charges paid.
Bank Payment Voucher
Voucher No: BPV-001 | Date: 10 April 2026
Firm NameM/s Expert Traders, Delhi
Cheque No.Cheque No. 004521 dated 10.04.2026
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Shyam Lal A/c (Creditor) | Dr. | 1,20,000 |
| To Bank A/c (SBI) | Cr. | 1,20,000 |
| Total | 1,20,000 | |
NarrationPaid Shyam Lal by cheque no. 004521 against purchase invoice of 28 March 2026
Prepared by
Checked by
Authorised by
📈 Type 4 — Bank Receipt Voucher
Prepared when a cheque or online payment is received by the business and deposited into the bank. Bank A/c is always Debited.
Bank Receipt Voucher
Voucher No: BRV-001 | Date: 12 April 2026
Firm NameM/s Expert Traders, Delhi
Cheque fromPriya Enterprises — Cheque No. 9921
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Bank A/c (SBI) | Dr. | 50,000 |
| To Priya Enterprises A/c | Cr. | 50,000 |
| Total | 50,000 | |
NarrationCheque no. 9921 received from Priya Enterprises deposited in SBI
Prepared by
Checked by
Authorised by
📈 Type 5 — Contra Voucher
Prepared when a transaction involves both Cash A/c and Bank A/c only — i.e., money moves between cash and bank within the business itself. No outside party is involved. Used for: cash deposited into bank, cash withdrawn from bank for office use.
Contra Voucher
Voucher No: CV-001 | Date: 15 April 2026
Firm NameM/s Expert Traders, Delhi
TransactionCash deposited into SBI bank account
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Bank A/c (SBI) | Dr. | 2,00,000 |
| To Cash A/c | Cr. | 2,00,000 |
| Total | 2,00,000 | |
NarrationCash ₹2,00,000 deposited into SBI bank account on 15.04.2026 — Contra Entry
Prepared by
Checked by
Authorised by
Contra Entry Rule: An entry is a Contra Entry ONLY when both sides involve Cash and Bank accounts exclusively. Example: Cash deposit into bank, Bank withdrawal for office. The word "contra" means "opposite" — Cash and Bank are always on opposite sides.
📈 Type 6 — Journal Voucher (Transfer Voucher)
Prepared for transactions that do not involve any cash or bank movement. Used for all non-cash, non-bank adjustments. Examples: depreciation, outstanding expenses, prepaid expenses, interest on capital, bad debts written off, purchase returns, sales returns.
Journal Voucher
Voucher No: JV-001 | Date: 31 March 2026
Firm NameM/s Expert Traders, Delhi
TransactionDepreciation charged on machinery at year end
| Account | Dr./Cr. | Amount (₹) |
|---|---|---|
| Depreciation A/c | Dr. | 30,000 |
| To Machinery A/c | Cr. | 30,000 |
| Total | 30,000 | |
NarrationDepreciation @ 10% p.a. on Machinery ₹3,00,000 — ₹3,00,000 × 10% = ₹30,000
Prepared by
Checked by
Authorised by
5. Summary — Six Types of Accounting Vouchers
| Type | When Used | Account Always on Dr. Side | Account Always on Cr. Side |
|---|---|---|---|
| Cash Payment Voucher | Cash paid out (expense, creditor, purchase) | Expense/Asset/Creditor A/c | Cash A/c |
| Cash Receipt Voucher | Cash received (sales, debtor, rent received) | Cash A/c | Income/Debtor/Capital A/c |
| Bank Payment Voucher | Payment by cheque/NEFT/RTGS | Expense/Asset/Creditor A/c | Bank A/c |
| Bank Receipt Voucher | Cheque/online payment received | Bank A/c | Income/Debtor A/c |
| Contra Voucher | Cash ↔ Bank transfer only | Bank A/c (for deposit); Cash A/c (for withdrawal) | Cash A/c (deposit); Bank A/c (withdrawal) |
| Journal Voucher | Non-cash, non-bank adjustments | Varies (Depreciation, Bad Debts etc.) | Varies (Asset, Debtor etc.) |
6. Source Document vs Voucher — Key Differences
| Basis | Source Document | Accounting Voucher |
|---|---|---|
| Meaning | Original evidence of a business transaction | Document prepared by accountant based on source document |
| Prepared by | External party (seller, bank, etc.) or internal (wage sheet) | Accountant of the business |
| Purpose | Proof that transaction occurred | Basis for recording entry in the Journal |
| Contains | Transaction details, amounts, party info | Journal entry (Dr./Cr.), narration, authorisation |
| Examples | Cash Memo, Invoice, Receipt, Debit Note | Cash Voucher, Bank Voucher, Journal Voucher |
| Nature | External/primary document | Internal document |
⚡ Quick Recall — Chapter 6 Key Points
Source Document = original written proof of a transaction. Examples: Cash Memo, Invoice, Receipt, Debit Note, Credit Note, Pay-in-slip.
Accounting Voucher = prepared by accountant from source document. Contains Dr./Cr. entry, narration, and authorised signature.
Flow: Source Document → Accounting Voucher → Journal → Ledger.
Cash Payment Voucher: Cash A/c always Cr. Used when cash goes OUT of business.
Cash Receipt Voucher: Cash A/c always Dr. Used when cash comes IN to business.
Bank Payment Voucher: Bank A/c always Cr. Payment by cheque/online transfer.
Bank Receipt Voucher: Bank A/c always Dr. Cheque/online payment received and deposited.
Contra Voucher: ONLY when Cash A/c and Bank A/c are involved. Cash deposit = Bank Dr, Cash Cr. Withdrawal for office = Cash Dr, Bank Cr.
Journal Voucher: For non-cash, non-bank entries. Depreciation, outstanding, bad debts, purchase/sales return, interest on capital.
Debit Note: Sent by BUYER to supplier for purchase return. Credit Note: Sent by SELLER to customer for sales return.
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20 MCQs — Origin of Transactions & Preparation of Vouchers
Mixed difficulty — source documents, voucher types, and voucher preparation. Correct answers highlighted green.
📝 Questions 1 to 20
1
A Source Document is:
AA book of accounts maintained by the business
BThe original written evidence that a business transaction has taken place
CA summary prepared at the end of the year
DA report submitted to the government
Answer: B. A Source Document is the original written evidence of a business transaction. It is the starting proof on which all accounting entries are based. Examples: Cash Memo, Invoice, Receipt, Debit Note, Credit Note.
2
Which source document is issued when goods are sold for CASH?
AInvoice / Credit Bill
BCash Memo
CDebit Note
DPay-in-slip
Answer: B — Cash Memo. A Cash Memo is issued by the seller when goods are sold for cash. It serves as the buyer's proof of cash purchase. An Invoice is used for credit sales, not cash sales.
3
A Debit Note is prepared by:
AThe seller when goods are returned by the customer
BThe buyer when goods are returned to the supplier
CThe bank when money is debited from the account
DThe government for tax purposes
Answer: B — Buyer prepares Debit Note. When the buyer returns goods to the supplier, he sends a Debit Note informing the supplier that "I have debited your account in my books." This is the source document for a Purchase Return entry.
4
A Credit Note is issued by:
AThe seller when goods are returned by the customer (sales return)
BThe buyer when purchasing on credit
CThe bank when a cheque is deposited
DThe buyer when returning goods to the supplier
Answer: A — Seller issues Credit Note. When a customer returns goods, the seller issues a Credit Note informing the customer "I have credited your account in my books." It reduces the customer's outstanding balance. Basis for Sales Return entry.
5
The correct flow of an accounting transaction is:
ALedger → Journal → Voucher → Source Document
BVoucher → Source Document → Journal → Ledger
CSource Document → Voucher → Journal → Ledger
DJournal → Voucher → Source Document → Ledger
Answer: C. The correct accounting flow is: Source Document (proof of transaction) → Accounting Voucher (prepared by accountant) → Journal (first book of entry) → Ledger (final posting). Each step builds on the previous one.
6
Salary paid to staff in cash ₹40,000. Which accounting voucher is prepared?
ABank Payment Voucher
BCash Payment Voucher
CJournal Voucher
DContra Voucher
Answer: B — Cash Payment Voucher. Salary is paid in cash → cash goes OUT → Cash Payment Voucher. Entry: Salary A/c Dr ₹40,000; To Cash A/c Cr ₹40,000. Cash A/c is always on the Credit side of Cash Payment Voucher.
7
Rent received in cash ₹15,000 from tenant. Which voucher is prepared?
ACash Receipt Voucher
BCash Payment Voucher
CBank Receipt Voucher
DJournal Voucher
Answer: A — Cash Receipt Voucher. Rent received in cash → cash comes IN → Cash Receipt Voucher. Entry: Cash A/c Dr ₹15,000; To Rent Received A/c Cr ₹15,000. Cash A/c is always on the Debit side of Cash Receipt Voucher.
8
Paid creditor Ramesh ₹80,000 by cheque. Which voucher is prepared?
ACash Payment Voucher
BContra Voucher
CBank Payment Voucher
DJournal Voucher
Answer: C — Bank Payment Voucher. Payment made by cheque → Bank A/c Cr → Bank Payment Voucher. Entry: Ramesh A/c Dr ₹80,000; To Bank A/c Cr ₹80,000. Bank A/c is always on the Credit side of Bank Payment Voucher.
9
Cash ₹2,00,000 deposited into the bank. Which voucher is prepared?
ACash Receipt Voucher
BBank Payment Voucher
CJournal Voucher
DContra Voucher
Answer: D — Contra Voucher. Cash deposited into bank involves only Cash A/c (Cr.) and Bank A/c (Dr.) — both are cash/bank accounts. This is the definition of a Contra Entry. Entry: Bank A/c Dr ₹2,00,000; To Cash A/c Cr ₹2,00,000.
10
Depreciation charged on machinery ₹30,000 at year end. Which voucher is prepared?
ACash Payment Voucher
BBank Payment Voucher
CContra Voucher
DJournal Voucher
Answer: D — Journal Voucher. Depreciation involves no cash or bank movement — it is a non-cash adjustment. Entry: Depreciation A/c Dr ₹30,000; To Machinery A/c Cr ₹30,000. Journal Voucher is used for all non-cash, non-bank entries.
11
In a Cash Payment Voucher, which account is ALWAYS on the Credit side?
ABank A/c
BCapital A/c
CCash A/c
DExpense A/c
Answer: C — Cash A/c. In every Cash Payment Voucher, Cash A/c is on the Credit side (cash goes out). The account receiving the benefit is on the Debit side. This is the defining feature of Cash Payment Vouchers.
12
A Contra Voucher is prepared ONLY when:
AAny two accounts are involved
BOnly expense accounts are involved
CBoth Cash A/c and Bank A/c are involved — and no other account
DA creditor is paid by cash
Answer: C. A Contra Voucher is prepared only when the transaction involves Cash A/c and Bank A/c exclusively — meaning money moves between cash and bank within the business. If any third account (like a creditor) is involved, it is NOT a contra entry.
13
Cash withdrawn from bank for OFFICE USE ₹50,000. Which voucher is prepared?
ACash Payment Voucher
BBank Payment Voucher
CContra Voucher
DJournal Voucher
Answer: C — Contra Voucher. Cash withdrawn for office use: Cash A/c Dr ₹50,000; To Bank A/c Cr ₹50,000. Only Cash and Bank are involved — Contra Voucher. If withdrawn for personal use: Drawings A/c Dr, Bank A/c Cr — then Bank Payment Voucher (third account involved).
14
Goods returned to supplier Mohan ₹12,000. The source document prepared by the buyer is:
ACredit Note
BCash Memo
CDebit Note
DInvoice
Answer: C — Debit Note. When the buyer returns goods to the supplier, the buyer prepares a Debit Note. It informs Mohan (supplier): "We have debited your account by ₹12,000 in our books." This is the source document for the Purchase Return entry.
15
Outstanding salary ₹20,000 recorded at year end. Which voucher is prepared?
ACash Payment Voucher
BBank Payment Voucher
CJournal Voucher
DContra Voucher
Answer: C — Journal Voucher. Outstanding salary is an adjustment entry with no cash or bank movement. Entry: Salary A/c Dr ₹20,000; To Outstanding Salary A/c Cr ₹20,000. Journal Voucher covers all non-cash, non-bank adjustments.
16
Cheque of ₹60,000 received from debtor Suresh and deposited in bank. Which voucher is prepared?
ACash Receipt Voucher
BContra Voucher
CBank Receipt Voucher
DJournal Voucher
Answer: C — Bank Receipt Voucher. Cheque received from Suresh and deposited into bank: Bank A/c Dr ₹60,000; To Suresh A/c Cr ₹60,000. Three accounts? No — only Bank and Suresh. Bank comes in → Bank Receipt Voucher. Not Contra (Suresh is involved, not just Cash/Bank).
17
CUET: Assertion (A): A Contra Voucher is prepared when cash is paid to a creditor. Reason (R): Contra entries involve only Cash and Bank accounts.
ABoth A and R are true, and R correctly explains A
BBoth A and R are true, but R does not explain A
CA is false; R is true
DBoth A and R are false
Answer: C — A is false; R is true. When cash is paid to a creditor: Creditor A/c Dr, Cash A/c Cr — the Creditor account is involved, so it is a Cash Payment Voucher (NOT Contra). The Reason (R) is correct: Contra entries involve ONLY Cash and Bank accounts. Since paying a creditor involves a third account, it is not contra.
18
CUET: Which of the following is prepared using a Journal Voucher?
ACash sales ₹50,000
BRent paid by cheque ₹10,000
CCash deposited in bank ₹1,00,000
DBad debts written off ₹8,000
Answer: D — Bad debts written off. Bad Debts written off: Bad Debts A/c Dr, Debtor A/c Cr — no cash or bank movement → Journal Voucher. Option A = Cash Receipt Voucher. Option B = Bank Payment Voucher. Option C = Contra Voucher. Journal Voucher is for all non-cash, non-bank entries.
19
CUET: Which of the following sequences is CORRECT regarding source documents and vouchers?
AInvoice is prepared by the buyer; Debit Note is prepared by the seller
BCredit Note is sent by buyer; Debit Note is sent by seller
CInvoice is prepared by the seller; Debit Note is prepared by the buyer (purchase return); Credit Note is prepared by the seller (sales return)
DCash Memo is issued for credit sales; Invoice is issued for cash sales
Answer: C. Invoice: seller issues for credit sales. Cash Memo: seller issues for cash sales. Debit Note: buyer prepares for purchase return. Credit Note: seller prepares for sales return. Option D is wrong — it reverses Cash Memo and Invoice.
20
CUET: A business has the following transactions on the same day — (i) Cash sales ₹30,000 (ii) Paid insurance by cheque ₹5,000 (iii) Cash deposited in bank ₹20,000 (iv) Depreciation on furniture ₹10,000. How many Contra Vouchers are prepared?
ANone
BOne — for transaction (iii) only
CTwo — for transactions (i) and (iii)
DFour — all transactions need contra vouchers
Answer: B — Only one Contra Voucher for (iii). (i) Cash sales → Cash Receipt Voucher. (ii) Insurance by cheque → Bank Payment Voucher. (iii) Cash deposited in bank → Contra Voucher (only Cash and Bank involved). (iv) Depreciation → Journal Voucher. Only transaction (iii) qualifies as a Contra Entry.
Chapter 6 — Live Quiz
20 questions · Source Documents & Vouchers · One at a time · Instant feedback
Question 1 of 20
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