 Identify types of source documents and the

importance of it

 Introduction to the Books of Original Entry –

various stage of recording transactions and
when should they be used

 Explain the function of chart of accounts

and identify accounts and their location in
the respective ledger
Sources Document

Adjustments
Record in Journal

Prepare Post Trial Balance

Post to Ledger

Financial Statement
Prepare Trial Balance
PURCHASE ORDER
 document prepared by buyer when ordering goods from the
suppliers

 states the specified goods ordered, terms of delivery and

terms of payments
SALES INVOICE
 prepared when there is a credit sale.

 states the customer’s name, date of sales, quantity, price, value of

goods supplied and credit term

 Prepared in triplicate copy (the original copy is sent to the buyer, a

copy to the accounts department of the seller and another copy to
the sales department of the seller)
PREMIER SDN BHD
Sublot 6, Block 12, Jalan Admiral, 93360 Kuching
Tel: 082-222777 Fax: 082-232776

Customer: _________________________ No.: A 111322

Address: _________________________ Date: ________
Terms: 2/10 net 30 days D/O#: ________

Item Description Qty Unit price (RM) Amount (RM)

Payment (Cheque/ Cash/ Card) TOTAL

Cheque/ Card No: _____________

Received by: ___________ Issued by: _____________

PURCHASE INVOICE
 prepared when there is a credit purchase OR normally
an invoice received by the buyer, which in fact is the
seller’s sales invoice.

 states the customer’s name, date of sales, quantity,

price, value of goods supplied and credit term
PREMIER SDN BHD
Sublot 6, Block 12, Jalan Admiral, 93360 Kuching
Tel: 082-222777 Fax: 082-232776

Customer: _________________________ No.: A 111322

Address: _________________________ Date: ________
Terms: 2/10 net 30 days D/O#: ________

Item Description Qty Unit price (RM) Amount (RM)

Payment (Cheque/ Cash/ Card) TOTAL

Cheque/ Card No: _____________

Received by: ___________ Issued by: _____________

DELIVERY ORDER
 document sent by the seller when delivering
goods to a buyer
 buyer verify the goods delivered and acknowledge
receipt by signing the delivery order
DELIVERY ORDER D'Top Furniture
No. 0167 Sdn Bhd (65678-T)

Delivery to: _______________ Tel: 082 499001

Address: _______________ Fax: 082 421321
_______________ Email: info@dtop.com
_______________ Website: www.dtop.com
Your order ref: __________
Delivery by: __________ Date: ________

Item Qty Description

Goods received in good condition by: Invoice to follow

Received by: ……………… ....................................

for D'Top Furniture Sdn Bhd
GOODS RECEIVED NOTE
 document prepared by buyer after inspecting
the quantity and quality of the goods
received.
DEBIT NOTE
 document prepared by buyer for goods
returned to the seller. The original copy is
sent to the seller and the buyer keeps one
copy.

 Thedebit note is to notify the seller of a

reduction in the amount owing to the seller.
CREDIT NOTE
 document issued by seller to inform the buyer
that a credit has been made to the buyer’s
account for goods returned by the buyer.

 Thecredit note is to notify the customer of a

reduction in the amount owed by the
customer.
PAYMENT VOUCHER
 Document issued by the buyer before a
cheque is issued, for payment of goods or
services received.

 document to support payment of cash or

cheque
 document shows the date, name of the
receiver, amount paid and the purpose of the
payment
OFFICIAL RECEIPT
 Prepared by the party to acknowledge the
amount received from the buyer
 statesthe amount received, types of payment
either in cash or by cheque and the reasons
for the payment
Business Issued
Invoice to customers : Credit sales
Debit note to supplier : Return outwards
Credit note to customers : Return inwards

Business Received
Invoice from supplier : Credit purchase
Debit note from customer : Return inwards
Credit note from supplier : Return outwards
 A journal also called a book of prime entry or book of
original entry, is where all business transactions are
initially recorded in chronological order.

 Type of journals
◦ General journal
◦ Specialised journals
 Purchase journal
 Sales journal
 Return inwards journal
 Return outwards journal
 Cash receipt journal
 Cash payment journal
 Uses to record:
◦ Sales/purchase of Non-Current Asset/fixed
assets ON CREDIT
◦ Correction of errors
◦ Opening and closing entries
◦ Withdrawals of stock for owner’s own use
(drawings of inventory by owner)
◦ Adjusting and reversing entries
 e.g.: On 1/1/06 Ali purchased office furniture
from ABC RM10,000 on credit

Date Details Folio Debit Credit

(RM) (RM)
2006 Office Furniture GL 10,000
Jan 1 ABC PL 10,000
 Uses to record goods purchased ON CREDIT

 Sources documents : invoices received from

supplier
e.g.: April 1: bought goods on credit from Abu RM100,
invoice no: 123

Date Particulars Invoice no Folio Amount

(RM)
April 1 Abu 123 PL 100

Transferred to purchases a/c GL 100

 Uses to record credit sales

 Sources document: invoice sent to debtors

e.g.: April 2 : sold goods on credit to XYZ RM200, invoice
no. 222

Date Particulars Invoice no Folio Amount

(RM)
April 2 XYZ 222 SL 200

Transferred to sales a/c GL 200

 Uses to record transactions involving goods
returned by (received from) customer

 Sources document: credit note issue to

customer/debtors
e.g.: April 10 : goods return by XYZ RM50, credit note
no.: 111

Date Particulars Credit Folio Amt

note no (RM)
April 10 XYZ 111 SL 50

Transferred to return inwards a/c GL 50

 Uses to record transactions involving goods
returned to supplier

 Sources document: debit note sent by

customer
e.g.: April 9 : goods return to Abu RM20, debit note no.:
011

Date Particulars Debit Folio Amt

note no (RM)
April 9 Abu 011 PL 20

Transferred to return outwards a/c GL 20

 Uses to record all cash received from any sources

 Source documents: receipt and cash register

summary
e.g.:
Apr 25 received RM150 cheque from XYZ
Apr 27 Received RM200 cash from XYZ given 5% discount
Apr 27 Commission received by cheque RM450

CASH RECEIPTS JOURNAL

Other
Date Accounts Fol Bank Cash D.A. Debtors Sales Account
Credited
(Dr) (Dr) (Dr) (Cr) (Cr) (Cr)
Apr XYZ 150 150
25
Apr XYZ 190 10 200
27
Apr Commission 450 450
27 Received
 Use to record all cash payment made by
business for any purposes

 Source documents: payment voucher,

cheque if payment are made by cheque
  e.g.: Apr 20 paid RM180 to Abu, cheque no 222333
 Apr 24 Paid sundry expenses by cash RM250
 Apr 26 Paid Abu RM200 cash received 5% discounts
CASH PAYMENTS JOURNAL
Other
Date Accounts Fol Bank Cash D.R. Creditors Purchases Account
Debited
(Cr) (Cr) (Cr) (Dr) (Dr) (Dr)
Apr 20 Abu 180 180

Apr 24 Sundry
250 250
Expenses
Apr 26
Abu 190 10 200
 The number and type of accounts in the ledgers
differ from the business to business. It depends on
the nature and size of the business.
 A chart of account is created to facilitate the record
keeping process.
 A Chart of Account is a list of account titles and the
account number, which identify their location in the
ledger.
 The numbering system used to identify the account
usually starts with the Balance Sheet accounts and
followed by Profit and Loss accounts
 Chart of Accounts
ASSETS LIABILITIES REVENUE

Current Assets Current Liabilities 410 Sales

110 Cash 210 Creditors 420 Interest Received
120 Bank 220 Accrued Rent 425 Discount Received
130 Debtors 222 Accrued Utilities Expenses
140 Prepaid advertising
142 Prepaid insurance
Long-Tern Liabilities EXPENSES
260 Loan from Bank
Fixed Assets 510 Advertising Expenses
160 Land 520 Insurance Expenses
170 Buildings 530 Rent Expenses
180 Maotr Vehicles 540 Utilities Expenses
OWNER'S EQUITY
310 Capital
320 Drawing
THANK YOU
HOMEWORK:
PAST YEAR QUESTIONS
JUNE 2018
JAN 2018 QUESTION 2 (C) Identify the
JULY 2017 books of prime entry

DEC 2016
JUNE 2016