Professional Documents
Culture Documents
PP11 - SourceDocuments
PP11 - SourceDocuments
Source Document
Objectives:
1. Determine and understand both sales and purchases system
2. Identify source document used to make entries into the books of
original entry.
3. Prepare source document using a set of transactions.
THE
ACCOUNTING
CYCLE
The Sales System
Purchases System
DEFINITIONS
+SOURCE DOCUMENT
+A written document that provides information from
which accounting records can be prepared. It
provides evidence that a particular transaction took
place.
Source Documents
+Invoice – The supplier then send an ‘invoice to the buyers detailing the
goods or services supplied and the amount due for payment.
+Credit note – upon receipt of the faulty goods and ‘debit note’ the
supplier issues a ‘credit note’ indicating the amount of refund/allowance
approved.
Source Documents
+Receipt – When goods are purchased and paid for immediately by cash
then a receipt is issued, usually via a cash-till-generated document.
+Paying-in slip – form used to pay and deposit money into the business
bank account.
BILL TO
[Name]
[Company Name]
[Street Address]
[City, ST ZIP]
[Phone]
[Email Address]
DESCRIPTION AMOUNT
+ Credit note is a document that is raised by the supplier when goods have been returned by
the purchaser due to damage, faulty or supplied with the wrong specification or when an
overcharge has been made on an invoice. Amount owed by the customer will be reduced by
the amount of the credit note.
___________________ _______________
Depositor’s Signature Depositor’s Name
Cheques
+Is a document that orders a bank to pay a specific amount of
money from a person’s account to the person in whose name
the cheque has been issued.
The following information can be found in these documents:
+ Date
+ Bank name and address (Drawee)
+ Cheque number
+ Name of business or person who the cheque will be paid (Payee)
+ Words and number of amount to be paid
+ Signature of the person issuing/writing the cheque. (Drawer)
This cheques: $________ Atlantic BANK
BAL: _________________ Date: ____________
DEPOSIT: _____________
TOTAL: _______________ Pay ____________________________________or Bearer
BAL: _________________
The sum of ________________________________________
PAY TO: ______________
FOR: ________________ _______________________________
DATE: _______________
____________________
Business Name
_726__
SERIAL NUMBER 40-5263-0089-5055 “0050
REMEMBER!
Receipts
Use the following information to draft an invoice, debit note, credit note, and receipt for Elite Promo
ltd, 4Th Main Street, Belize City:
1. June 4, Sold $110 worth of goods on credit to Ace warehouse, Invoice no. 731.
2. June 10 Approved the requested return from Ace warehouse for $88, note no. 436.
3. June 21 Sold $200 worth of goods on credit to C. Burns, invoice no 790.
4. June 26 Sent a request for the return of goods to J. Jackson $56, note no. 65.
5. June 30 Sold $90 worth of goods to A. Espat, received a cash payment.