1. Preparation of Documents
Identification &
Preparation of Documents DR CR
Chapter-2

2. DOCUMENT Every Business Transaction is supported by a DOCUMENT
DOCUMENT is an evidence or Proof of a BUSINESS TRANSCTION.

3. Examples – DOCUMENTS
QUOTATIONS: Evidence of terms and conditions of supply of goods and services.
PURCHASE ORDER: Evidence of terms and conditions, quantity and specification of goods and services ordered..
INVOICES/BILLS: Evidence of sale of goods and services.
DELIVERY NOTE: Evidence of delivery of goods and Properties sold
CREDIT/DEBIT NOTE: Evidence of:
adjustments in purchase or sale,
goods returned inward or goods return outward,
Discount allowed or discount received.
RECEIPTS: Evidence of amount received
PAYMENT VOUCHER: Evidence of payment made

4. Documents & the evidence of Business Transactions
Sr. No.
Document
Prepared by
For the purpose. 1
QUOTATIONS
SUPPLIER (SELLER)
Evidence of terms and conditions of supply of goods and services 2.
PURCHASE ORDER
PURCHASER (CUSTOMER)
Evidence of terms and conditions, quantity and specification of goods and properties to be purchased 3.
INVOICES/BILLS
Evidence of sale of goods and services. 4.
DELIVERY NOTE
Evidence of delivery of goods and Properties sold 5.
CREDIT/DEBIT NOTE
Creditor
(SELLER) OR
Debtor (CUSTOMER)
Evidence of:
adjustments in purchase or sale,
goods returned inward or goods return outward,
Discount allowed or discount received.
(DEBIT NOTE TO DEBIT ACCOUNT/ CREDIT NOTE TO CREDIT ACCOUNT) 6.
RECEIPTS VOUCHER
Receiver
Evidence of amount received 7.
PAYMENTS VOUCHER
Giver
Evidence of amount paid

5. An example of an invoice

6. An invoice with trade discount