Source Documents

Question 1

What source document records - Goods sold on credit

Answer 1

Sales invoice

Question 2

What source document records - Goods preiviously sold on credit have been returned.

Answer 2

Credit note

Question 3

What source document records - Cheque received for goods sold on credit.

Answer 3

Bank paying-in slip counterfoil (lodgement slip counterfoil)

Question 4

What source document records - The payment of wages by cheque.

Answer 4

Cheque counterfoil

Question 5

What source document records - The return of goods to a supplier. The goods had previously been purchased on credit.

Answer 5

Credit note (purchases)

Question 6

What source document records - Goods from a manufacturer purchased on credit.

Answer 6

Purchase invoice

Question 7

What source document records - Goods preivously bought on credit returned to the supplier.

Answer 7

Credit note (purchases)

Question 8

What source document records - Cash and cheques deposited in the bank account.

Answer 8

Bank paying-in slip counterfoil (lodgement slip counterfoil)

Question 9

What source document records - payment made to a supplier by cheque.

Answer 9

Cheque counterfoil

Question 10

What source document records - Sale of goods on credit.

Answer 10

Sales invoice

Question 11

Identify the source document for a customer paying for goods by credit transfer

Answer 11

Bank statements

Question 12

Identify the source document for goods sold and paid for immediately

Answer 12

Till roll

Question 13

What is included in the receivables ledger?

Answer 13

T-accounts for each credit customer.
For each customer, it shows invoices, credit notes, payments, discounts and the amount owed by that customer

Question 14

What is included in the payables ledger?

Answer 14

T-accounts for each credit supplier.
For each supplier, it shows invoices, credit notes, payments, discounts and the amount owed to that supplier.

Question 15

What is included in the general ledger?

Answer 15

T-accounts for every item that will appear in the financial statements

Question 16

Explain the term Direct Debit.

Answer 16

Payments made by the bank from the customers (That is the business’s) account. It is the payee, or beneficiary, who originates the payment on the written instructions of the customer. Direct debits can be for fixed or variable amounts, and the payment dates can be altered

Question 17

Explain the term Standing Order.

Answer 17

Regular payments - eg. Weekly, monthly - made by the bank from the account of their customer (that is the business). Payments are for fixed amounts, on the written instructions of the bank’s customer. Rent and loan payments are often made by standing order.