3) Basic Record Keeping

Question 1

what is a source document

Answer 1

A source document is an original record which contains details which substantiates that a transaction has been or will be entered in an accounting system

Question 2

what is a receipt

Answer 2

A receipt is a source document that is sent to someone who pays money. It is their proof that an amount of money has been paid.

Question 3

what is a cash register summary

Answer 3

A cash register summary is a source document taken from the cash register of the business at the end of the days trading. it shows the amount of money which has been received for that particular day

Question 4

what is a cheque

Answer 4

A cheque is a source document addressed to the bank to pay the bearer of the cheque on demand a definite sum of money.

Question 5

what is an invoice

Answer 5

An invoice is a source document that is made out by the seller of goods or service and sent out to the buyer of those goods.

Question 6

What are errors disclosed by the trial balance

Answer 6

1. A debit or credit entry was omitted
2. An amount was recorded incorrectly
3. Making transposition error in ledger
4. Debit and Credits were totalled incorrectly

Question 7

What are errors not disclosed by the trial balance

Answer 7

1. Incorrect amount entered in both accounts
2. Transaction entered more than once.
3. Transaction was left out
4. Transaction recorded in wrong account.