SOURCE DOCUMENTS & ACCOUNTING REPORTS

Question 1

What are cash receipts?

Answer 1

> Refers to both the transaction that occurs when cash is received from another entity and the source document that verifies transactions.
Cash receipts will have; TAX INVOICE, the date of transaction, the receipt number, name and ABN of the seller, description of what has been purchased, the selling price inc. GST.

Question 2

What is an invoice?

Answer 2

> A source document used to verify credit transactions.

> Sales invoice & Purchase invoice

Question 3

What’s a sales invoice include?

Answer 3

> name of sellers business on top of document

> original is given to buyer

Question 4

What’s a purchase invoice include?

Answer 4

> buyers name in the “TO” section

> the seller keeps a duplicate.

Question 5

What is a memo?

Answer 5

A memo is a source document used to verify internal transactions.

Question 6

What is a cheque butt?

Answer 6

> Used to verify cash payments

> The rip-off side of a cheque