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प्रश्न
Why is the evidence provided by source documents important to accounting?
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उत्तर
The evidence provided by the source document is important in the following manners:
1. It provides evidence that a transaction has actually occurred.
2. It provides important and relevant information about date, amount, parties involved and other details of a particular transaction.
3. It acts as a proof in the court of law.
4. It helps in verifying transactions during the auditing process.
संबंधित प्रश्न
The fundamental steps in the accounting process are diagrammatically presented below:
Should a transaction be first recorded in a journal or ledger? Why?
Why are some accounting systems called double accounting systems?
Give a specimen of an account
What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts
If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?
Describe the events recorded in accounting systems and the importance of source documents in those systems?
Describe how debits and credits are used to analyse transactions
Describe how accounts are used to record information about the effects of transactions?
