Step 1: Identifying Transactions and Verifying the Sources of Documents
In a business, a number of transactions take place each day. These transactions are of different kinds and can include payment of rent and electricity bills, the purchase of machinery or materials, and the sale of goods. The number of transactions depends on the size and nature of the business.
Every business transaction must have a source document as a verification of the transaction. If the source document is not available, one should be created. This created type of document is known as a memorandum.
Below are some examples of different kinds of source documents.
Click the images below to learn about the different types: