business papers that show the nature of a transaction and provide all the information necessary to...
TRANSCRIPT
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CHAPTER 6 THE JOURNAL
AND SOURCE DOCUMENTS
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Source DocumentsBusiness papers that show the nature of a transaction and provide all the information necessary to account for the transaction properly
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Example #1 ~ Cash Sales Slip
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Example #1 ~ Cash Sales Slip
customer
Pre-numbered slip to ensure none are lost
Nature of the transaction
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Example #1 ~ Cash Sales Slip
Journal Entry for a Cash Sales Slip:
DR CRBank 35.90 Sales 35.90
Total for entry
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Example #2 ~ Sales Invoice
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Example #2 ~ Sales InvoiceCustomer to be charged
When payment is due
Nature of transaction Preset serial
number
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Example #2 ~ Sales Invoice
Journal Entry for a Sales Invoice:
DR CRA/R – S.&S. Boatworks 835.70
Sales 835.70
Total for entry
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Example #3 ~ Point of Sale Summaries
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Example #3 ~ Point of Sale Summaries
A till printout for Visa, Mastercard and Debit card transactions for one month
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Example #3 ~ Point of Sale Summaries
Journal Entry for POS Summaries
DR CRBank 734.18 Sales 734.18
Total for entry
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Example # 4 ~ Purchase Invoice
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Example # 4 ~ Purchase Invoice
Name of vendor credited in Account Payable
General Engineering’s Invoice number
Shows how long Masthead Marine has to make payment
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Example # 4 ~ Purchase InvoiceJournal Entry for Purchase Invoice:
DR CREquipment Repairs Expense 241.50 A/P – General Engineering241.50
Total used for entry
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Example #5 ~ Cheque Copy
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Example #5 ~ Cheque Copy
Who the cheque is for
Reference number
Owner’s Signature
Reference number is repeated on tear off portion
Details of payment
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Example #5 ~ Cheque Copy
Journal Entry for a Cheque Copy:
DR CRA/P – Streling Spars 1802.90
Bank 1802.90
Total for entry = cheque total
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Example #6 ~ Cash Receipts Daily Summary
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Example #6 ~ Cash Receipts Daily Summary
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Example #6 ~ Cash Receipts Daily Summary
Journal Entry for a Cash Receipts Summary:
DR CRBank 2142.24 A/R – A. Baldwin 375.00 A/R – F Perri965.52 A/R – Pier 10 Marina801.72
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Example #7 ~ Bank Advice
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Example #7 ~ Bank AdviceTells whether the account has been debited or credited
Explanation
Date of entry
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Example #7 ~ Bank Debit Advice
Journal entry for a Bank Debit Advice:
DR CRBank Charges and Interest 113.50
Bank 113.50
A Bank Debit Advice advises the company that an expense has been debited.
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Example # 8 ~ Bank Credit AdviceIf a company generates revenue from interest then a Bank Credit advice is used to notify them of the increase in their equity.
Sample Journal Entry for a Bank Credit Advice:DR CR
Bank 43.76 Interest Earned 43.76
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SUMMARY