Business Documents Flashcards
What’s the purpose of an order form?
This is used by the customer to place an order with the supplier when wishing to buy goods.
What details do an order form include?
The customer’s and supplier’s name and adress.
The date the order is placed.
An order number.
Catalogue number and description of goods.
Quantity required.
Unit price and total price of each item.
Total cost of the order.
What’s the purpose of an invoice?
Sent by the supplier to the buyer when goods are purchased on credit to charge the buyer for the goods.
What details are included in an invoice?
The supplier and the customer’s name and adress.
The date.
An invoice number.
Catalogue number and description of goods.
Quantity.
Unit price and total price of each item.
Total cost of the goods.
Total VAT charged on the goods.
Total invoice total (net goods value+ VAT)
Payment terms and any discounts available.
What is the purpose of a copy invoice?
This is an exact copy of the invoice which is kept by the seller of the goods to allow them to record the sale in the ledgers.
What’s the purpose of a credit note?
This is sent by the seller to the buyer when the buyer returns goods which they originally purchased on credit. The buyer uses this document to record the purchase reurn.
What details are included in a credit note?
The supplier’s and customer’s name and adress.
The date.
A credit note number.
Catalogue number and description of goods.
Quantity and reason for the goods being returned.
Unit price and total price for each item.
Total cost of goods.
Total VAT on the returned goods.
The total value of the credit note.
What is the purpose of a copy credit note?
This is a exact copy of the credit note. It is kept by the original seller of the goods in order to record the return of the goods back to them. This is shown as a sales return in the seller’s ledger.
What is the purpose of a statement?
This is sent by the supplier to the customer at the end of an agreed period- usually at the end of a month. It shows all the transactions which have taken place between the supplier and the customer during that month. The final balance shown in the statement represents the amount due by the customer to the supplier at the end of the month. The customer is a debtor of the supplier.
What details are included in a statement?
An opening balance- which is the amount that was owed by the customer to the supplier from the previous month.
Invoice numbers sent during the month and the otal value of each invoice- shown as DR entries and added to the opening balance/running balance.
Credit note number sent during the month and the total for each credit note- shown as CR entries on the statement and deducted from the balance.
Payments are made to the business byy the debtor. Theses are shown as Dr entries and deducted from the total balance.
The closing balance which represents the amount owed by the customer to the supplier at the end of the month.
What is the purpose of a receipt?
Given to the customer by the supplier when payment has been made. This is used by the customer to record the details of the payment in the ledger- Bank/Cash CR and purchases DR. This acts as proof of payment.
What details are included in a receipt?
Name and adress of the seller.
Date.
Description of the goods.
Total amount paid for the goods.
What is the purpose of a copy receipt?
This is an exact copy of the receipt and is used to record the details of the sale and payment received in the supplier’s ledger- Sales CR and Bank/Cash DR.
What is the purpose of a Cheque?
This is used instead of cash in order to pay for goods or services. It is used by the supplier to record deatails of a sale and payment received in the ledger e.g. Sales CR and Banl DR.
What detais are included in a cheque?
The date.
Name of the payee who is receiving the money.
The amount to be paid in words and figures.
The signature of the payer.
