Hello friend, today we are going to learn all about source documents. I hope this article will be of help to you. What are source documents? Source documents are the documents that provide accounting information. Some of the examples of source documents are;
1. Invoice; An invoice is a document that gives the quarterly quality unit price and quantity of items shipped or received. It also gives the allowable discount and transportation costs.
There are different types of invoices. These include;
I. Invoices received; These are bills that are received from creditors. It is then that goods are bought on credit; must be issued by the provider.
II. Outgoing invoices; these are invoices that are sent to the debtor, for example, if the organization has sold its goods on credit.
What is the importance of invoices? You can ask.
I. The issued invoices help the client to verify if the goods that are delivered to him are those indicated in the invoice.
II. Help by writing a sales journal.
third In case of conflict between the debtor and the organization, it can be used to resolve it as the carbon copy is sent to the debtor.
Incoming bills, on the other hand, help write a shopping journal. It also helps to check if the received goods are the ones on the invoice. What is a shopping day book? You can ask. This is where purchases made on credit during a particular day are recorded. On the other hand, a sales book is where credit sales made during a given day are recorded.
2. The second type of source document is called a cash sale.
