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6.2 Source Documents

The document outlines various business forms used for transaction recording, including cash sales slips, sales invoices, point of sale summaries, purchase invoices, cheque copies, cash receipts, and bank advices. Each form serves a specific purpose in documenting sales, purchases, and payments, with an emphasis on the importance of pre-numbering for tracking and control. Additionally, it highlights the need to keep these documents for future reference, error checking, and auditing purposes.

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2 views

6.2 Source Documents

The document outlines various business forms used for transaction recording, including cash sales slips, sales invoices, point of sale summaries, purchase invoices, cheque copies, cash receipts, and bank advices. Each form serves a specific purpose in documenting sales, purchases, and payments, with an emphasis on the importance of pre-numbering for tracking and control. Additionally, it highlights the need to keep these documents for future reference, error checking, and auditing purposes.

Uploaded by

catmanandfriends
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Source Documents

• Business documents that provide information about


transactions
• Verification/evidence of transaction
• Keep on file for future reference, locating errors,
and audit purposes
Cash Sales Slip (Fig 6.4, p. 185)

• a business form showing the details of a transaction in which


goods/services are sold for cash
• 3 copies – customer, accounting, file
• Note: serial pre-numbering as an accounting control
technique to ensure that no slips are lost, that none are used
without being recorded, and no false ones are made out. Also
easy reference.
• Therefore 🡪 If a prenumbered document is accidentally
spoiled, should be marked VOID and kept
Sales Invoice (Fig 6.5 p. 186)

• Business form showing details of a sale on account


• B2B – do not deal with general public ∴ no cash sales
• Pre-numbering applied, one copy to shipping, payment terms
• Vendor sells Purchaser buys
Point of Sale Summaries (Fig 6.6 p. 186)

• Computerized sales register that allows a business and


customers to exch. funds electronically
• Credit cards and debit cards
• Print off Host Reconciliation/Card Summary at end of day –
bc the business (host) will compare the total at the bottom
to an amount on bank stmt (to appear on monthly stmt
prepared by bank)
• Transaction log – contains detailed info about each
transaction (name and card #)
Purchase Invoice (Fig 6.7 & 6.8, p. 187)

• Business form representing a purchase on account


• Vendor = issues sales invoice to 🡪 Purchaser = then becomes
a purchase invoice
• WHO’s WHO
• Take notice of the company names on invoice to
differentiate btw vendor and purchaser:
• VENDOR = usually larger font w logo and more noticeable company
name (will be A/P)
• PURCHASER = often states ‘in account with’ or ‘sold to’
• DR acct 🡪 depends on G&S purchased
• CR acct 🡪 always an A/P
Cheque Copies (Fig 6.9, p. 189)

• Document supporting the accounting entry for payments by


chq
• Wages (payroll records as proof)
• Owner’s withdrawals (chq copy is sufficient proof)
• Payments on account
• DR acct 🡪 depends on transaction
• CR acct 🡪 always Bank
Cash Receipts (Fig 6.10, p. 190)

• Business paper that lists the money coming in from


customers (cash & chqs)
• Chqs must be deposited in bank ∴summary/list of cash
receipts supports the entries
• List shows: names, amounts, what is being paid
• To help prepare the summary - uses tear-off portions or
remittance advice (form accompanying the cheque explaining
the payment ie. invoice copy)
Bank Advices (Fig 6.11, p. 191)

• Times when a bank initiates a change in the bank account of


a business – business informed through a bank advice or
bank memo
• Bank debit advice – bank document informing business of a
decrease made in the bank account
• Bank credit advice – bank document informing business of an
increase made in bank account

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