THE ORIGINAL RECORD CONTAINING THE DETAILS OF A TRANSACTION WHICH SERVES AS A BASIS FOR POSTING IS
January 25, 2024
- A. general ledger
- B. source document ✓
- C. subsidiary book
- D. trial balance
The answer to the question is: B. source document
A source document is the original record that contains the details of a transaction. It serves as the basis for posting entries to the general ledger. Source documents provide evidence that a transaction has occurred and include items such as invoices, receipts, checks, purchase orders, and contracts. These documents are used to support the accounting entries made in the financial records of an organization. Without accurate and complete source documents, it would be difficult to verify the validity of transactions and ensure the accuracy of financial reporting.
