Accounting language define that a Invoice or bill is prepared by the seller of goods when the goods are sold on credit. It has details with respect to the name of the party to whom goods are sold the description of the goods sold and the total amount of sale, the original Copy of the sales invoice is sent to the purchaser and a duplicate copy is retained as an evidence of the sale for recording in books of account and also for future reference. From the purchaser’s point of view, purchases are evidenced by credit bills received from the supplier. One makes out an invoice but receives a bill, thought the two terms are interchangeable and mean the same thing.
As per accounting terms When Cash or cheque is received from a customer, a receipt is issued as an acknowledgement for having received the Cash. Receipt is also prepared in duplicate. The original copy is handed over to the party tendering the payment and the duplicate copy is kept for record. This source document contains the details regarding date, amount, name of the party and the nature of the payment.
As per accounting term, this source document relates to the bank transactions. Pay-in-Slip is a form available from a bank for depositing money in a bank account. It has a counterfoil, which is returned to the depositor with signature of the Cashier, as receipt. The counterfoil of the pay-in-Slip gives the details regarding the date, the amount (in Cash or cheque) deposited.
As per accounting definition A cheque is a document in writing drawn upon a specified banker and payable on demand. The bank supplies the cheque book having folios. The name of the party to whom payment is to be made is written after the words ‘Pay To’. Then the amount has to be written-both in words and figures. A cheque must be dated and signed by the drawer. Each cheque has a counterfoil. The same details are entered on the counterfoil, which remains with the account holder for his future reference. The counterfoil forms the source document for entries to be recorded in the account books.
The term ‘Debit Note’ is reserved for a document evidencing a debit to be raised against a party for other reasons, for example, when goods are returned to a supplier or when an additional amount is recoverable from a customer, however a credit note is raised against customers for sale return.
Read more about ratio in accounting course offered by IPA