Question

The source document _______________ is required for recording transactions in sales book.

• A. Outward invoice
• B. Credit memo
• C. Bill
• D. All of the above

Answer 1

Answer: (D)

All of the above

A source document is the original record containing the details to substantiate a transaction entered in an accounting system.

Following are the source document for transactions in sales book:

1. Outward invoice - It is a seller's bill. It is an invoice which is sent by seller to buyer.

2. Credit memo - It is a document issued by the seller of goods or services to the buyer, reducing the amount that he owes to the seller under the terms of an earlier invoice.

3. Bill - A bill is an invoice that a supplier gives to its customers which they have to pay.