MODULE NO.

: 1 Teacher: Larry Mofa

Subject: Accounting 8 DATE: 5 feb – 9 feb. 2024
Parent’s Signature: _____________ Marks: ____/25
Name:_________________________________________

TOPIC: Business Documents

References and Resources: Cambridge IGCSE and O Level Accounting by June Baptista.
LEARNING OBJECTIVES:

LESSON PROPER/CONTENT
LESSON 1:

Business documents
Business documents are documents that a business uses to source financial data for use in accounting records.
Business documents are:
» invoices
» notes (debit and credit)
» statements of account
» cheques
» receipts
» bank statements.

Invoices
Invoices are used by a business at the time of a credit sale. The customer who receives the original invoice uses it as
a record of his/her credit purchases. The supplier keeps a copy of the invoice as a record of his/her credit sales.
Hence, the same document can be a sales invoice or a purchases invoice.
Though each business may have its own version of an invoice, all invoices should contain the following information:
» the seller’s name and address
» the buyer’s name and address
» the date
» a clear description of the goods or service supplied, including price and quantity. Before we look at an example of
an invoice, it is necessary to distinguish between a cash discount and a trade discount. A cash discount is a
discount given to customers for prompt payment. It is recorded in the books of accounts. A trade discount, which is
shown as a deduction on the list price in an invoice, is not
documented in accounting records. A trade discount is given to customers who buy in bulk or who have been long-
standing customers.
LESSON 2