Question

1.SourceDocumentation [Sample answer] Sales Invoice sessment Criteria Learner can: 2.1Identify a range of source records used in the preparation of accounts. A sales invoice is an example of a source record; it is a document sent by a business to a buyer (i.e. its customer or a debtor) specifying the exact amount and cost of products or services that have been provided by the business. It is a demand for payment after a credit sale transaction, which is then posted onto the sales day book. Below is a depiction of an invoice issued by a firm called Type911 of 72 Bromley to its customer; not only does the invoice show the total amount of the items sold,i.e. £350.15 but it also gives a breakdown of each item by quantity and cost (which includes the VAT). Every invoice has a number, in this example it is 29907 and these are always sequence which facilitates in making it easier and quicker to locate. It can be argued that afterthe £350.15, the figure 29907 is the second most important number on an invoice. INVOICE 87 0270 20 England. UK 20 8402 Fax: 44(0)2o n6so 0930 11 Dog Toohh Inkbotdesien Apart from an invoice (since it has already been used as a sample above) Write a report (750 words, plus or minus 20%) which describes four other source documents/records which are used in the preparation of accounts relating to sales and purchases (In 4 other source documents please make sure you include these as well Cheque, Receiptsand other 2 you can choose any you want) It is important that your report not only gives a description of each, but that it is also accompanied by an illustration (as has been done above). Note, if any images are taken or copied from the internet, a book or any other source, make sure that you acknowledge this by properly citing within text and referenced at the end [Thia queation addreaescriterion 2.1]

Answer 1

Source documents used in preparation of accounts relating to sale and purchase or range of source of documents

a) Cheque - Check is a type of document which represents that cash is being paid by the customer. A cheque contain the signature of payer and contain the name of payee with date and amount. It is a very strong evidence for recording the transaction.

b) Receipts - Receipts are important source documents for recording petty cash sales. On making a cash sale, a receipt is generated or prepared as a proof of receipt of payment which later helps in recording the transaction in books of accounts.

Receipt given to customer

c) Employee Time cards - It is helpful in employee salary expenses. Emplyee salary is based on the number of hours he worked hence time cards are useful in automatic and timely salary payment to all the employees

d) Debit/Credit Note - Credit/Debit note is raised for any return of goods, rate difference, Quantity difference. In case of sale of goods, if customer return the goods then a credit note will get issued by supplier and a debit note will get issued by customer. Credit note shows the amount refundable to customer and debit note shows the amount receivable from supplier and accordingly transactions are recorded in the books of accounts.