Source Documents

Question 1

What is a source document?

Answer 1

A source document is an original record which contains the detail that supports or substantiates a transaction that will be entered in an accounting system. In the past, source documents were printed on paper. today, the source documents may be an electronic record.

Question 2

E.x. of source documents:

Answer 2

• Receipts
• Cash Register Summary
• Cheque
• Invoice
• Credit Note

Question 3

Receipt:

Answer 3

A receipt is a document given to a person who pays money. It is his/her proof that the money has been paid.
Contains:
- Serial number of reciept
- Date the receipt was written
- Name of the person to whom the receipt is issued
- Amount of money received in words and figures
- Discount allowed
- The method of payment (cash or cheque)
- Signature of the person issuing the report
Original is sent to the person paying money.

Duplicate is retained by the person issuing the receipt.

Question 4

Cash Register Summary:

Answer 4

A cash register summary is taken from a business’s cash register at the end of a day’s trading. It shows the total amount received for that day.

Question 5

Cheque:

Answer 5

A cheque is an order in writing addressed to the bank to pay the person name, or the bearer of the cheque, on demand a definite sum of money.
- The cheque leaf is sent as payment to payee
- The cheque butt is retained by the drawer.

Question 6

Invoice:

Answer 6

Invoices are made out by the seller of goods and sent to the buyer when goods are bought. It provides the following details:
- Date
- an Invoice number
- Buyers order number
- Name and address of the buyer
- Quantity, description, unit price and total amount for each item
Original is sent to person buying good.

The duplicate is retained by the person selling the goods.

Question 7

Credit note:

Answer 7

A credit note is sent from the seller to the buyer to let him/her know an amount of money is to be taken off what he/she owes. A credit note can be written out for the following reasons:
- The buyer has returned goods that were unsatisfactory or were damaged or not what he/she ordered
- The buyer may have been overcharged on an invoice
- Empty, returnable containers may have been returned for credit.
A credit note is printed with exactly the same info as the invoice and is completed in the same way.

The original is sent to the person returning the goods.

The duplicate is retained by the person giving the credit.