SOURCE

DOCUMENTS
BUSINESS DOCUMENTS
 These are documents received and issued by the businesses. They contain vital
information about the transactions made between the businesses and are used to
make entries in the accounting records of businesses.
 They are also known as Source Documents.
 Every Company has a Pro-Forma document which is a standardized document.

• Source of information for making entries in the accounts of the business

• To confirm the agreements made in the business
• As An Evidence against any dispute
INVOICE
 A Document Issued by a business when making a credit Sale.
 This Document Contains:
 Name and Address of the Business making the Sale
 Name and Address of the Customer
 Date of Sale
 Details of Sale
 Carriage and Delivery Costs
 Payment Condition- Trade discounts or Cash Discounts

TRADE DISCOUNT: A discount given by one business to another business. It is

calculated as a percentage reduction in the invoice quantity
Calculate the Missing Values
DEBIT NOTE- issued by the
purchaser
 After making a Purchase, a business may notice that the goods received might not
be suitable . Maybe for the following reasons:
 Wrong Quantity
 Damaged or Faulty Products
 Incorrect goods
 Wrong specification( Size/colour/ liking)

The business might want to return the goods which are unsuitable back to the supplier.
The document issued BY THE BUSINESS TO THE SUPPLIER is a Debit Note
The Information contained in the Debit Note:
 Name and Address of the Business(the customer)
 Name and Address of the Supplier
 Date
 Details of Goods
 Value of the Goods
CREDIT NOTE- issued by the seller
 When the Supplier accepts the goods which are faulty or not required by the
business, the Supplier issues a Credit Note to the Customer(Business)
 The Information in the Credit note is:
 Name and Address of the Supplier
 Name and Address of the Customer
 Date
 Details of the Goods Returned
 Value of the Credit Note
OFTEN PRINTED IN RED
STATEMENT OF ACCOUNT
 A Document issued to all the Customers still owing money to the business. It contains
details relating to the transactions taking place between the business and the customer at
the end of the month
 The Statement of account will usually have:
 Name and address of the business
 Name and address of the customer
 Relevant transactions and the date of transactions
 Balance owing by the customer at the start and the end of the month
 Payments received by the customer during the month
 Details of invoices sent to the customers
 Details of any credit notes
CALCULATE THE MISSING VALUES
CHEQUE
 A Written Document authorising the payment from the bank account of a business
to another person or business.
 There are many automated methods of payments .
 The Cheques contain the following information:
 Name and Address of the Bank used by the business
 Account details of the business (Bank account no. IFSC CODE. Etc)
 Name of the Business
To make a Payment the business has to fulfil 4 details:
Cheque
Other Terms
 Cheque Counter foil
 Part of the Cheque which is kept by the business as a record of the payment made by
the Cheque
 Payer
 The person making the payment
 Payee
 The Person receiving the Payment
PAY IN SLIP
 A Document used to deposit funds (in the form of Cheque/ Notes/ Coins) into the
bank account
 2 ways a business records the money coming in to the bank:
 Payin slip stamped
 Counterfoil signed
Sources of information
Questions? Pich sold goods, $5000, on credit
to Roger
Questions!
Questions!
Questions!
Questions!
Questions!