Source Documents

Why are source documents even needed?

- To provide evidence for a transaction that has taken place

- This is in line with the objectivity concept

A list of common Source Documents used in Principles of Accounts (POA):

1. Invoice: A document sent from seller to buyer that represents the amount owing by the buyer due to a credit sale (Of assets/income).

2. Debit Note: A document sent from seller to buyer that represents additional amount owing by the buyer due to an undercharge by seller (Of goods).

 

3. Credit Note: A document sent from seller to buyer that represents a reduction on amount owing by the buyer. (Due to overcharge or damaged goods; sales returns)

 

4. Receipt: Business Receives money

 

5. Payment Voucher: Business pays out money

 

6. Cheque Counterfoil: A document to counter check payments being made by the business

 

7. Memorandum: Document to represent drawings or capital input by owner

*notes are applicable to Principles of Accounts, based on Singapore O/N level syllabus

©2020 by Joshua Raphael Tan.