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Source Documents and Books of Original Entry Notes: Form 4 Business Studies Notes

Institution: Secondary

Course: Business Studies

Content Category: Form 4 Notes

Posted By: raphael

Document Type: DOCX

Number of Pages: 7

Price: KES 40
 
    

Views: 273     Downloads: 2

Summary

Access Source Documents and Books of Original Entry Notes for Form 4 Business Studies instantly upon purchase. Receive via WhatsApp, email, or direct download.

SOURCE DOCUMENTS AND BOOKS OF ORIGINAL ENTRY
CONTENTS
• Source documents
• Books of original entry
• The petty cash book
• Analysis cash book
SOURCE DOCUMENTS
A source document is any document from which information recorded in the books of accounts is extracted.
Source documents serve as evidence that the transaction being recorded actually took place
Types of source documents
a) Cash receipt
This is a document that serves as evidence that cash has been received or paid out. Used as a source document when making entries in the cash books.
Normally prepared in duplicate. The original is issued to the person paying the money while a copy is retained by the receiver of the money.
A cash receipt may not be issued when payment is made by cheques since a cheque is in itself is a source document.
b) Invoice
An invoice acts as evidence that a credit transaction has taken place.
It is sent by the seller to the buyer demanding payment for goods supplied on credit.
An invoice is prepared in duplicate. A copy is retained by the sender
(Give an example of an invoice)
...................


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