Question
Differentiate between source documents and vouchers.

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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