Explain 6 use of document in business transaction
Answers
Common source documents include: invoices,credit note,debit note,cheque,voucher, receipt, bank statements and statements of accounts.
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Are issued to the business by their suppliers and other creditors.
They are used to update the Purchases Journal and.
to do a Purchases Ledger Reconciliation.
Aug 11, 2015
Answer:
Some of the source documents which help in the preparation of financial accounts, are as follows:
Bank statement: It contains a number of adjustments to a company’s balance of cash on hand that the company should reference to bring its records into alignment with those of the bank.
Credit card receipt: This can be used as evidence for a disbursement of funds from petty cash.
Packing slip: This describes the items shipped to a customer, and so supports the recordation of a sale transaction.
Sales order: This document, when coupled with a bill of lading and packing list, can be used to invoice a customer, which in turn generates a sale transaction.
Supplier invoice: This is also a source document that supports the issuance of a cash, cheque or electronic payment to a supplier. A supplier invoice also supports the recordation of an expense, inventory item, or fixed asset.
Explanation:
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