Business Documents

Question 1

Credit transaction

Answer 1

One where goods are bought but not paid for until a later date

Question 2

Letter of Enquiry

Answer 2

Buyer -> seller

-asks for a price and terms of sale

Question 3

Terms of sale

Answer 3

Sets out the V.A.T., delivery cost,Mayen payment is due and possible discount

Question 4

Quotation

Answer 4

Seller-> buyer

-shows price of goods, whether or not they are in stock, and terms of sale

Question 5

Carriage paid

Answer 5

Seller will pay for the delivery

Question 6

Trade discount

Answer 6

Money deduced (before V.A.T.) for people in the same business

Question 7

Cash discount

Answer 7

Money deduced for paying quickly

Question 8

Order

Answer 8

Written request from buyer to seller requesting goods

Question 9

Delivery nite

Answer 9

List of goods being delivered

Buyer signs to confirm they have recieves everything in good condition

Question 10

Invoices

Answer 10

Sent from seller to buyer
Lists details, price, quantity, terms of sale
The ‘bill’

Question 11

Credit note

Answer 11

Seller-buyer

Reduces price on invoice because they have been returned (because they were damaged etc.)

Question 12

CWO

Answer 12

Cash with order

-must pay when goods are ordered

Question 13

COD

Answer 13

Cash on delivery

-must pay when goods are delivered

Question 14

Statements

Answer 14

Seller-> buyer

-lists all invoices, credit noted etc. And balance of what is still owed

Question 15

Receipt

Answer 15

Proof of payment

Question 16

When given the goods and delivery note, the buyer should:

Answer 16

• ensure the goods were the ones ordered
• ensure the goods are the same on the delivery note
• ensure the goods have’t been incorrectly charged for on the invoice

-if fine, then sign the delivery note, receive their own copy and file it

Question 17

When issuing a cheque, you should ensure:

Answer 17

• accuracy (name, amount, etc)
• complete stub
• record in Accounts

Question 18

When issuing a credit note, you should ensure

Answer 18

• accuracy in name, address, figures, dates
• record in Sales Returns Book
• record in Debtor’s Ledger
• file a copy

Question 19

When preparing quotations, you should ensure

Answer 19

• buyers name and address is correct
• cheque accuracy of prices quoted
• check whether or not the goods are in stock
• a copy is filed

Question 20

When receiving an invoice, you should ensure:

Answer 20

• calculations are correct
• correct to the order and quotation
• recorded in Purchases Book
• recorded in the Creditor’s Ledger
• it is filed

Question 21

When issuing a statement, you should ensure:

Answer 21

• buyer’s name and address are correct
• details correspond with the Debtor’s ledger
• ensure all calculations are correct
• a copy is filed

Question 22

Cash transaction

Answer 22

• One where money is exchanged

- can be cash, cheque etc.