SOURCE DOCUMENTS

- Documents used in the business

- Serves as a record that a transaction has taken place
- Provides information that is recorded in books of original entry

TYPES OF SOURCE DOCUMENTS

1) Receipt- given to customer from supplier to show transaction has taken
place (recorded in cash book)

2) Invoice- serve as evidence that a credit sales transaction or credit

purchases transaction has taken place

Sales invoices- Sales Book e.g. Sent an invoice to..

Purchase invoices- Purchases Book e.g. Received an invoice from…

3) Credit note- usually printed in red.

- Represent transactions of:
1. stock returned by customers
2. stock returned to suppliers
3. Overcharges on an account

Credit note sent- sales returns book

Credit note received- purchases returns book

4) Debit note- Debit notes represent evidence of :

1. An undercharge on an invoice
2. Transport and insurance charges on goods

IMPORTANCE OF BUSINESS DOCUMENTS

- serve as evidence that a transaction has taken place
- They are retained for future reference by the business
- Without source documents, it is possible for the accounting records to be
falsified.