Raw Input of Accounting Information
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What source documents would be required in a manual accounting system in order to record the sales to customers and receipts of cash, and to ensure correct payment of monies to suppliers?
Source documents are a kind of basic evidence needed to record in an accounting transaction. Journal entries, financial records, and accounting reports are ultimately derived from source documents. Source documents are a critical part of an audit trail for establishing the authenticity, and tracing the history, of a transaction, this mean that source document is an evidence of business dealing. In manual accounting, the source documents used for recording sales to customers and receipt of cash, and to ensure correct payment of monies to suppliers have cash receipt, invoice, payment voucher, credit note, debit note, duplicate receipt and duplicate invoice. In other ways, bank statement and check stub also a variation of source documents.
Duplicate receipt, duplicate invoice and duplicate voucher- Informal record of manual accounting will needs duplicate receipt to record the whole transaction and receipt of cash, like grocery. But, in principle, the duplicate invoice that issue to customers is the main source documents to record sales to customers, because major transaction was used in credit system, so invoice become insensibility for record sales to customers. Duplicate voucher can record the receipt of cash by debtors.
Cash receipt received, invoice received and payment voucher- When a consumer use cash to purchase a goods, then he/she will received a cash receipt to ensure him have attain the ownership of the goods and impart the consumer that the amount he/she need to pay for the goods, the amount on receipt can ensure correct payment of monies to the suppliers. When credit purchase, the consumer will received a invoice to let he/she know about the certain amount that he/she need to paid, and this also can ensure correct payment of monies to suppliers. Payment voucher is a written record of expenditure and disbursement that can be a proof of payment to cash payer or customers, because it has record the detail in the transaction and signature of cash receiver or supplier.
Credit note and debit note – Credit note and debit note is used for adjusting the omission or error on invoice and return of goods between consumer and supplier. These kinds of source document usually use to adjust the change in credit transaction, and ensure the record of sales to customers and payment to suppliers is correctly.
Bank statement and check stub – After the receipt from customers and payment to suppliers, if a company needs to reconfirm that the receipt and payment is correct and dont have any errors, then it will use bank statement to ensure that the receipt of cash and payment to suppliers is seamlessly. When using check a medium of payment, the user can record the amount in check stub