Origin of Transaction

Accounting is known to be based upon provable objectives. In this assumption, it has been explained that accountancy deals with various facts. The subject has no place for any expectation, imagination and possibilities. It is all about verified facts.

Whenever any financial transaction takes place, it is recorded in the books of accounts. While recording a business transaction which has actually happened, it needs to be supported by valid documents. Thus, it is important that there is certain written and dependable proof of these transactions which has actually happened. Such written documents which are considered to be the base of accounting records, are known as vouchers.

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