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  • Source Documents - Answers: Source Document Debit(s) Credit(s)

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    Emily Xie
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    This document provides guidance on how to record common business transactions in accounting source documents. It lists source documents like cash sales slips, invoices, cheque copies, and bank memos alongside the accounts that would be debited and credited for each transaction. For example, a cash sale to a customer would debit cash and credit revenue, while a purchase on account by the business would debit the asset or expense account for the item purchased and credit accounts payable. The document helps accountants properly classify financial transactions for recording in double-entry bookkeeping.

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    source_documents_-_chart_exercise_-_answers_-_may_2021

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    This document provides guidance on how to record common business transactions in accounting source documents. It lists source documents like cash sales slips, invoices, cheque copies, and bank memos alongside the accounts that would be debited and credited for each transaction. For example, a cash sale to a customer would debit cash and credit revenue, while a purchase on account by the business would debit the asset or expense account for the item purchased and credit accounts payable. The document helps accountants properly classify financial transactions for recording in double-entry bookkeeping.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views2 pages

    Source Documents - Answers: Source Document Debit(s) Credit(s)

    Uploaded by

    Emily Xie
    This document provides guidance on how to record common business transactions in accounting source documents. It lists source documents like cash sales slips, invoices, cheque copies, and bank memos alongside the accounts that would be debited and credited for each transaction. For example, a cash sale to a customer would debit cash and credit revenue, while a purchase on account by the business would debit the asset or expense account for the item purchased and credit accounts payable. The document helps accountants properly classify financial transactions for recording in double-entry bookkeeping.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    SOURCE DOCUMENTS - ANSWERS

    Source Document Describe what has happened? Debit account Credit account

    cash sale to a customer was made


    cash sales slip CASH REVENUE

    sale on account to a customer was made


    sales invoice A/R REVENUE
    (goods or services)

    DEPENDS
    WHAT YOU
    BOUGHT e.g.
    we bought something on account (could be
    purchase invoice Equipment or A/P
    an expense OR an asset
    Supplies or
    Advertising
    Expense
    -we wrote a cheque to someone for
    DEPENDS
    something
    WHAT WAS
    cheque copy -could be previously owed OR NOT CASH
    PAID FOR,
    might be A/P
    -we received money from someone
    -could be previously owed OR NOT DEPENDS,
    cheques received CASH
    could be A/R

    EXPENSE (OF
    SOME SORT,
    -the bank has taken money from our
    possibly
    account for something
    bank debit memo Interest CASH
    -could be interest or bank charges or a bad
    Expense or
    cheque
    Bank Charges
    Expense)
    INTEREST
    -the bank has added money to our account EARNED
    for something (PROBABLY,
    bank credit memo CASH
    -could be interest earned but could be
    something
    else)

    Source Document Debit(s) Credit(s)

    CASH SALES SLIP CASH REVENUE


    (cash sale to a customer)

    SALES INVOICE A/R REVENUE


    (sale on account to a customer)

    PURCHASE INVOICE EQUIPMENT (DEPENDS) A/P


    (puchase on account by business)

    CHEQUE COPY OR CANCELLED


    CHEQUE
    (payment made by business) A/P (DEPENDS) CASH
    CHEQUE COPIES OR LIST
    (payment received from customer) CASH A/R

    DEBIT MEMO
    (deduction from business bank account) INTEREST EXPENSE OR
    BANK CHARGES CASH

    CREDIT MEMO CASH INTEREST REVENUE


    (increase in business bank account)

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