Source Documents Flashcards
What are the 8 source documents used by businesses
Sales invoices Purchase invoices Credit notes Cheque counterfoils Paying-in slip counterfoils Cash receipts Till rolls Bank statements
Sales invoices
A sales invoice is the document that a seller gives to a buyer when supplying goods/services on credit.
Purchase invoices
They are received by the buyer when goods/services are bought on credit. Sales for seller purchase for buyer
Credit notes
Show that goods have been returned and that they do not need to be paid for.
What are the two ways the term credit notes are used by a business?
When goods have been returned by customers,
When goods received by the business have been returned to its suppliers.
What is it called when goods have been returned by customers?
Sales returns
What is it called when goods received by the business have been returned to its suppliers
Purchase returns
Cheque Counterfoils
Provide a record of money paid out by the business
Paying-in slip counterfoils
Provide a record of cash and cheques banked by the business
Cash receipts
Receipts for goods and services that have been paid for at time of purchase
Till Rolls
Lists the amounts sold and paid for during a specific day and the total value of cash sales that day.
Who is the cash receipt the source document for?
The buyer
Who is the till roll the source document for?
The seller
Bank statements
Sent to biz by bank. Show each receipt and payment to and from the bank account and the balance.
What is the bank statement the source document for?
Standing order - payments at intervals by bank
Direct debit - transfer money to another bank (gas)
Credit transfer - electronic payment
Dishonoured Cheques - Cheques rejected by bank
