Source documents II

Business Studies J.S.S 1 Third Term

WEEK 4

Source documents II

Performance Objectives

The student should be able to:

     1. Differentiate between cash and credit transactions.

    2. Extract information from source documents for book-keeping purposes.

Content

Purchase order

This is a statement sent by the buyer to the seller. This order may be in the form of a letter or maybe prepared on a printed form. Description of the goods to be bought, the amount to be bought, address of delivery, the unit price of items and the delivery date must be changed to show on the order.

Cash receipt

This is written or printed acknowledgement on a piece of paper that money has been received. It is referred to as sales slips. It shows the date of payment, the person who made the payment, the amount and the signature of the receiver.

Cash register tapes

A cash register is a machine for a quick, easy and accurate transaction. Each item sold is clearly indicated and the prices totalled-up. This is registered on the tape and at the end of the day, becomes a source document.

Cash register book

At the end of the business day, entries are made into a cash register book from the receipt books. These are found in stores or shopping malls with a large volume of sales.

Invoice

It is a document prepared by the seller and sent to the buyer of goods or services. An invoice shows the items of sales, the number of goods sold, description of the supplier, discount granted etc. it is mostly prepared in duplicate. It also serves as a receipt.

Credit note

A credit note is a document prepared and sent by the seller to the buyer for goods or not as ordered.

Debit note

This is written out by the seller to the buyer to correct an undercharge or when goods are not charged on the invoice.

Deposit and Withdrawal slip

These are commonly found in banks and some other financial institutions. Whenever a customer wants to lodge in money into an account, he makes use of a deposit slip issued by the bank. If on the other hand, he or she wishes to withdraw money from a savings account, a withdrawal slip of the bank is filled and presented to the cashier.

Cheques

A cheque is a negotiating instrument instructing a bank to pay a specified sum of money to the person whose name is written on it. Money can be withdrawn either by the account holder authorizes to withdraw. A cheque can be crossed or open.