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CHAPTER 4: SOURCE DOCUMENTS

Source documents prove that transactions have taken place & are used to record transactions into the books of a business. Such transactions can be entered into the T-accounts using the rules of double-entry.

Example of Source Documents:

Source Document	Functions
Sales Invoice	A business document given by the seller to the buyer. A sales invoice is issued to collect payment for goods delivered or services rendered.
Credit Note	A business document sent by the seller to the buyer (when the buyer has been overcharged or if the damaged goods are returned)
Debit Note	A business document sent by the seller to the buyer (when the buyer has been undercharged on the invoice - usually costs incurred but not billed within the invoice e.g. delivery charges, GST etc.)
Payment Voucher	When a Statement of Account (a reminder for payment) is received, the buyer will prepare a Payment Voucher, which serves as a supporting document for preparing a cheque to pay the seller.
Cheque Counterfoil	This serves as a record for the buyer when he issues a cheque for payment of a Sales Invoice.
Receipt	A business document which is given to a debtor when he pays the debt. This serves as a form of acknowledgment that payment has been received by the seller.
Bank Statement	This shows a summary of the monthly transactions (payments & receipts) of both the buyer & seller. A bank statement is also necessary for the preparation of a bank reconciliation statement (Chapter 8)

To view a sample, click on any of the above source documents.