Business Documents

Question 1

Invoice

Answer 1

Sent by the supplier to the buyer when goods are purchased on credit to charge the buyer for the goods. The buyer uses the Invoice to record the purchase of the goods in the ledgers

Question 2

Credit Note

Answer 2

This is sent by the seller ti the buyer when the buyer returns goods which they originally purchased on credit. The buyer uses this document to record the purchase return.

Question 3

Statement

Answer 3

This is sent by the supplier to the customer at the end of an agreed period - usually at the end of the month. It shows all the transactions which have taken place between the supplier and the customer during that month. The final balance shown in the statement represents the amount due by the customer to the supplier at the end of the month. The customer is a debtor of the supplier.