**Difference between Source Documents and Vouchers**

Source documents and vouchers are important components of the accounting process. They both play a crucial role in recording and documenting financial transactions. However, there are distinct differences between the two. Let's explore these differences in detail:

**Source Documents:**

**Definition:** Source documents are original records that provide evidence of a transaction. They serve as proof of the occurrence and details of a financial transaction.

**Examples:** Some common examples of source documents include invoices, receipts, bank statements, purchase orders, sales orders, bills of lading, payrolls, and contracts.

**Purpose:** Source documents serve as the foundation of the accounting process. They provide the necessary information to record financial transactions accurately. These documents contain details such as dates, amounts, descriptions, and parties involved in the transaction.

**Characteristics:**

1. **Authenticity:** Source documents are original and authentic records that are created at the time of the transaction.

2. **Accuracy:** They provide accurate and complete information about the transaction, including details of the parties involved, dates, quantities, and amounts.

3. **Audit Trail:** Source documents create an audit trail, allowing for the verification and auditing of financial transactions.

4. **Legal Validity:** Source documents have legal validity and can be used as evidence in case of disputes or legal proceedings.

**Vouchers:**

**Definition:** Vouchers are documents that are prepared by an organization to authorize and approve financial transactions. They provide evidence that the transaction has been properly authorized and recorded.

**Examples:** Some common examples of vouchers include cash vouchers, bank vouchers, journal vouchers, and purchase vouchers.

**Purpose:** Vouchers serve as a control mechanism to ensure that financial transactions are properly authorized and recorded. They provide an internal audit trail and facilitate the review and approval process.

**Characteristics:**

1. **Authorization:** Vouchers require proper authorization from authorized personnel or management before a transaction can be recorded.

2. **Recording:** Vouchers are used to record and summarize financial transactions in the accounting system.

3. **Supporting Documents:** Vouchers are often accompanied by supporting source documents, such as invoices or receipts, which provide detailed information about the transaction.

4. **Internal Control:** Vouchers are an essential part of the internal control system of an organization. They help prevent fraud, errors, and unauthorized transactions by requiring proper authorization and documentation.

**Conclusion:**

In summary, source documents are original records that provide evidence of a transaction, while vouchers are documents that authorize and approve financial transactions. Source documents serve as the foundation of the accounting process, providing accurate and authentic information, while vouchers serve as a control mechanism to ensure proper authorization and recording of transactions. Both source documents and vouchers are important for maintaining accurate financial records and facilitating the auditing and review process.