Business Documents Flashcards
Credit transaction
One where goods are bought but not paid for until a later date
Letter of Enquiry
Buyer -> seller
-asks for a price and terms of sale
Terms of sale
Sets out the V.A.T., delivery cost,Mayen payment is due and possible discount
Quotation
Seller-> buyer
-shows price of goods, whether or not they are in stock, and terms of sale
Carriage paid
Seller will pay for the delivery
Trade discount
Money deduced (before V.A.T.) for people in the same business
Cash discount
Money deduced for paying quickly
Order
Written request from buyer to seller requesting goods
Delivery nite
List of goods being delivered
Buyer signs to confirm they have recieves everything in good condition
Invoices
Sent from seller to buyer
Lists details, price, quantity, terms of sale
The ‘bill’
Credit note
Seller-buyer
Reduces price on invoice because they have been returned (because they were damaged etc.)
CWO
Cash with order
-must pay when goods are ordered
COD
Cash on delivery
-must pay when goods are delivered
Statements
Seller-> buyer
-lists all invoices, credit noted etc. And balance of what is still owed
Receipt
Proof of payment
When given the goods and delivery note, the buyer should:
- 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
When issuing a cheque, you should ensure:
- accuracy (name, amount, etc)
- complete stub
- record in Accounts
When issuing a credit note, you should ensure
- accuracy in name, address, figures, dates
- record in Sales Returns Book
- record in Debtor’s Ledger
- file a copy
When preparing quotations, you should ensure
- buyers name and address is correct
- cheque accuracy of prices quoted
- check whether or not the goods are in stock
- a copy is filed
When receiving an invoice, you should ensure:
- calculations are correct
- correct to the order and quotation
- recorded in Purchases Book
- recorded in the Creditor’s Ledger
- it is filed
When issuing a statement, you should ensure:
- buyer’s name and address are correct
- details correspond with the Debtor’s ledger
- ensure all calculations are correct
- a copy is filed
Cash transaction
- One where money is exchanged
- can be cash, cheque etc.
