Differentiate between source documents and vouchers.

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Answer

Basis of Difference	Source Documents	Vouchers
Meaning	It refers to the documents in writing, containing the details of events or transactions.	When source document is considered as evidence of an event or transaction, then it is called voucher.
Purpose	It is used for preparing accounting vouchers.	It is used for analysing the transactions.
Recording	It acts as a basis for preparing accounting voucher that helps in recording.	It acts as a basis for recording transactions.
Preparation	It is prepared at the time when an event or a transaction occurs.	It can be prepared either when an event or a transaction occurs, or later on.
Legality/ Validity	It can be used as evidence in the court of law.	It can be used for assessing the authentication of transactions.
Prepared By	It is prepared by the persons who are directly involved in the transactions, or who are authorised to prepare or approve these documents.	It is prepared by the authorised persons or by the accountants.
Examples	Cash memo, invoice, and pay-in-slip, etc.	Cash memo, invoice, pay-in-slip (if used as evidence), debit note, credit note, cash vouchers, transfer vouchers, etc.

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2019	Particular	₹
Jan-1	Started business with cash	2,00,000
Jan-1	Purchased furniture vide Cash Memo No. 210*	10,000
Jan-5	Opened a Bank Account in Canara Bank	60,000
Jan-10	Purchased garments on credit from M/s Madras Store vide Bill No. 291*	20,000
Jan-12	Sold shirts to Ram Parkash on credit vide Bill No. 1*	5,000
Jan-15	Sold shirts for cash vide Cash Memo No. 1*	7,000
Jan-20	Withdrew from bank for office use by cheque No. 23301	20,000
Jan-27	Withdrew for personal use by cheque No. 51003	5,000

Debit balance shown by the pass book ₹ 17,800.
Cheques of ₹ 21,600 were issued in the last week of December, but of these ₹14,800 only were presented for payment.
Cheques of ₹ 10,750 were deposited in bank, out of them a cheque of ₹ 4,200 was credited in the first week of January, 2017.
A cheque of ₹ 1,200 was debited in the cash book but was not deposited in bank.
Insurance premium paid by bank ₹ 1,450.
A bill of exchange for ₹ 6,200 which was discounted with bank, returned dishonoured but no entry was made in the cash book.
Bank charges and interest charged by bank are ₹ 350.

2017
March 1	Cash in hand ₹ 1,800 and at Bank ₹ 11,000
March 5	Received a cheque for commission ₹ 3,960. Cheque was immediately deposited into bank
March 7	Bought goods for cheque ₹ 7,000
March 8	Bought goods for cash ₹ 500
March 10	Purchased a Computer and payment made by cheque of ₹ 5,000
March 14	Paid Trade Expenses ₹ 105
March 16	Paid into Bank ₹ 1,000
March 18	Ramesh who owed us ₹ 500 became bankrupt and paid us 50 paise in a ₹
March 20	Received ₹ 400 from Manohar and allowed him discount ₹ 10
March 23	Withdrew from Bank ₹ 400
March 23	Paid ₹ 300 to Ghanshyam Dass & Co. They allowed us discount ₹ 10
March 24	Received ₹ 2,000 from Hari Ram and deposited the same into Bank
March 25	Withdrew from Bank for private expenses ₹ 300
March 27	Sold goods for cash ₹ 200
March 28	Received cheque for goods sold ₹ 9,000
March 29	Received repayment of a loan of ₹ 5,000 and deposited ₹ 3,000 out of it into Bank
March 30	Bank charges as per Book ₹ 5

a.	Commenced business with cash	₹ 1,50.000
b.	Purchased machinery on credit	₹ 40,000
c.	Purchased goods for cash	₹ 20,500
d.	Purchased car for personal use	₹ 80,000
e.	Paid to creditors in full settlement	₹ 38,000
f.	Sold goods for cash costing ₹ 5,000	₹ 4,500
g.	Paid rent	₹ 1,000
h.	Commission received in advance	₹ 2,000

		₹
01	Cash In hand	7,500
	Bank overdraf	3,500
03	Paid wages	200
05	Cash sales	7,000
10	Cash deposited into bank	4,000
15	Goods purchased and paid by cheque	2,000
20	Paid ren	500
25	Drew from bank for personal use	400
30	Salary paid	1,000