Unit 4-The Accounting Cycle

Page 1

What are source documents?

Invoice

Receipt

Deposit Slip

Check Counterfoil

Statement

Payment Confirmation

Why source documents?

-The first documents that exist relating to a transaction

-Serve as proof for a transaction, includes date and time

(EQ)

Invoices

-Normally relate to credit transactions

-List goods or services provided and their prices

-Suppliers normally send an invoice with goods (or once services have been delivered)

-Indicate payment in terms (time)

-"Bills"

-Has due date, description, tax, to, terms (and other sorts of information)

Receipts

-Confirm that services or goods have been received

-Normally relate to cash transactions

Cash transactions=receipts, credit transactions=invoices

Deposit Slip

-Proof that cash has been deposited into a bank account

-Coins and cash

-Businesses sources documents for every transaction as proof

Check Counterfoil

-Part of the check kept by the drawer (writer) of the check as a record of the transaction

-Right hand side is ripped off as a receipt, A is the check counterfoil (the part the drawer keeps), and B is the receipt

Statement

-A report showing the amount owed by one business to another

-Details of transactions between the two businesses

-Date, due dates, what happened with money, how much is owed, etc.

Payment Confirmation

-Proof of Internet transactions

4-1 Source Docs