Source documents and Journals Flashcards
Explain the purpose of source documents.
Provide evidence that transactions have taken place.
Name and explain the accounting concept applied when using source documents.
The use of source documents is in accordance to the objectivity concept, which requires transactions to be recorded based on information that is reliable and verifiable.
State the purpose of an invoice.
To record credit sale and purchase of goods or services
State the purpose of a credit note.
To record return of goods
State the purpose of a receipt.
To acknowledge that cash/cheque has been received
State the purpose of a debit note.
To correct an undercharge in the invoice
State the purpose of a bank statement.
Used to check against the cash at bank account
State the purpose of a petty cash voucher.
To record payment made from petty cash fund
State the purpose of the Sales Journal.
To record credit sale of goods
State the purpose of the Purchases Journal.
To record credit purchase of goods
State the purpose of the Sales Returns Journal.
To record return of goods from customers
State the purpose of the Purchases Returns Journal.
To record return of goods to supplier
State the purpose of the Cash Book.
To record all cash/cheque received and paid
State 2 purposes/uses of the General Journal.
- To record drawings (non-cash)
- To record capital contributions (non-cash)
- To record depreciation
- To record credit purchase of non-current assets
State the source document used and the journal in which the following transaction is recorded:
Credit sale of goods
Source document used
Invoice
Journal
Sales Journal
