Source Documents
No Description
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
SYLLABUS OVERVIEW
- Recognize and understand the following documents
- Invoice
- Debit note
- Credit note
- Statement of account
- Cheque
- Receipt
- Complete proforma business documents
- use of these documents as sources of information
Photo by STIL
WHAT IS A BUSINESS DOCUMENT?
- Start of the book-keeping process
- No source document = no proof that any transaction occurre
- Documents which should be in bookkee records
- Source document = specially designed form supplying details of a business transaction
- Origin of information recorded in accounting books
WHAT DOES A BUSINESS DOCUMENT CONTAIN?
Photo by @CarShowShooter
CONTENT OF A SOURCE DOCUMENT
- Date
- Nature and type of transaction
- Value of transaction
- Names of buyers and sellers
Photo by Joshua Rawson-Harris
WHY IMPORTANT?
- Evidence of transaction
- To record transaction in the books
- For auditing purpose
BUSINESS DOCUMENT IN ACCOUNTING PROCESS
Photo by Kelly Sikkema
Untitled Slide
TYPES OF BUSINESS DOCUMENTS
INVOICE
- Submit to customer
- Shows that customer owes to business
- Several details therein, like date, name address of seller, name address of buyer, quantity, amount,
- Description of transaction
- Total owing
Photo by neilberrett
DEBIT NOTE
- A written request sent to seller
- To ask for deduction in amount owing
- Reason: return of goods
- Sent from buyer to seller
Photo by skuds
CREDIT NOTE
- In books of seller, reduces amount owed by customer
- Written acceptance of the return of goods
- Sent from seller to buyer
CHEQUE
- Special bank note
- Represents cash paid by buyer
- Signature required from authorized signatory of bank account
- Special number of each cheque, recorded in bookkeeping system
- Payee name should be on cheque
- Why a cheque is crossed off? Or written ‘not negotiable’ or ‘bearer’?
RECEIPTS
- Once payment done by customer, supplier issues the receipt
- Proof of payment
- Automatically provided by shop nowadays
STATEMENT OF ACCOUNT
- Summary of all transactions taken place during the month
- All source documents mentioned will be used to determine the details of all transactions in the statement
