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					Source Documents
The Source Document
   is a business paper that shows the nature of a transaction
    and provides all of the information needed to account for
    it properly.
   A company is required to keep source documents on file.
   They will be used within the office for reference
    purposes, for location errors and so on.
   They also provide the factual evidence to verify
    transactions of the business.
   They provide proof that the accounting records have
    been prepared accurately and honestly.
Cash Sales Slip
   Is a business form showing the detail of a transaction in
    which goods and services are sold to a customer for cash.
    There is an original and two copies.

   Journal entry for a Cash Sales Slip

    Bank              XXX
     Sales                  XXX

See page 166 for a sample
Sales Invoice
   Is a business form showing the detail of a transaction in
    which goods or services are sold on account.
   The party that sells is known as the vendor and party that
    buys is known as the purchasers. There is an original and
    several copies.

   Journal entry for a Sales Invoice

    Account Receivable       XXX
     Sales                          XXX
Point of Sale (POS) Summaries
   A computerized sales register that allows a business and its
    customers to exchange funds electronically. Credit cards and debit
    cards use this form of payment.
    The company will print at least two source documents. One is the
    Host Reconciliation/Card Summary. This is to compare the total
    of the card summary to an amount that will appear on the bank
    statement.
    The other printout is a report called a transaction log. This is a
    document generated by a point of sales terminal that contains
    detailed information about each transaction. The document will
    included each customer’s name and card number.

   Journal Entry for POS Summaries

    Bank         XXX
      Sales                      XXX
Purchase Invoice
   Is a business form representing a purchase of goods or
    services on account.
   Journal entries for purchases entries
   The account debits depends on the nature of the goods
    or services purchased
   The account credit is always an account payable.
    Example (pg. 169):
    Equipment Repairs        $240.00
          A/P – Coleman Boats              $240.00
Cheque Copies
   Is a document supporting that accounting entry for a
    payment by cheque.

   Journal entries for purchases entries

   The account debits depend on the nature of the payment
   The account credit is always bank
    Example (pg 170)
    A/P – Sterling Spars     $1,802.90
        Bank                             $1,802.90
Cash Receipts Daily Summary
   Is a business paper that lists the money coming in from customers.
    The cash receipts list is the source document for the accounting
    entries for cash receipts. It shows the names of the customers, the
    dollar amounts, and what the amounts are paying for in each case.
    To help prepare this form, the clerk uses the information on the
    tear-off portions of the cheques received, or remittance advice sent
    along with the cheques.
   A remittance advice is a form accompanying the cheque explaining
    the payment.

   Journal entries for Cash receipts Daily Summary

    Bank                         XXX
     A/R- customer’s name                         XXX
     A/R- customer’s name                         XXX
     A/R- customer’s name                         XXX
Bank Advices (Or Bank Memos)
   Two types of advices:
   Bank debit advice (memo) – bank document informing
    the business of a decrease made in the business’s bank
    account
   Bank credit advice (memo) – bank document informing
    the business of an increase made in the business’s bank
    account
Additional Supporting Documents
 Receipts, such   as those for donation or
  postage
 Bills, such as hydro or telephone charges;
 E-mail invoices
 Insurance endorsement certificates
 Written memos form the owner
 Bank statements
 Cash register tapes
Please Copy
   The chart on page 172 into your notes

				
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posted:5/3/2013
language:English
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