Home Financial Accounting Meaning of Invoice receipt cheque

Learn Accounting Meaning of Invoice or Bill Receipt Pay-in-Slip Cheque Debit and
Credit Notes
Invoice
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 nam
e 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 purc
haser 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 v
iew, purchases are evidenced by credit bills received from the supplier. One ma
kes out an invoice but receives a bill, thought the two terms are interchangeabl
e and mean the same thing.
Receipt
As per accounting terms When Cash or cheque is received from a customer, a recei
pt 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 cont
ains the details regarding date, amount, name of the party and the nature of the
payment.
Pay-in-Slip
As per accounting term, this source document relates to the bank transactions. P
ay-in-Slip is a form available from a bank for depositing money in a bank accoun
t. It has a counterfoil, which is returned to the depositor with signature of th
e Cashier, as receipt. The counterfoil of the pay-in-Slip gives the details rega
rding the date, the amount (in Cash or cheque) deposited.
Cheque
As per accounting definition A cheque is a document in writing drawn upon a spec
ified banker and payable on demand. The bank supplies the cheque book having fol
ios. The name of the party to whom payment is to be made is written after the wo
rds 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 fo
r his future reference. The counterfoil forms the source document for entries to
be recorded in the account books.
Debit and Credit Notes
The term Debit Note is reserved for a document evidencing a debit to be raised aga
inst a party for other reasons, for example, when goods are returned to a suppli
er or when an additional amount is recoverable from a customer, however a credit
note is raised against customers for sale return.
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