BUSINESS DOCUMENTS
ACCOUNTING 7707/0452
Prepared by:
Amna Waheed
Business Documents
Business document provides information about a
transaction that took place.
All businesses are involved in buying and selling of goods
and services in order to make profit. In this trading
process some important business documents are issued
by the buyer and seller.
The entries in the accounting records of a business are
made using business documents. Both documents
received and issued by a business are used.
Documents Supplier Customer
Invoice
Sales Journal Purchases Journal
Debit Note
X (request) X
Credit Note
Sales Return Journal Purchases Return Journal
Statement of account
X (reminder) X
Cheque(Paying-in slip)
Cash book (Dr) Cash book(Cr)
Receipt
X (acknowledgment) X
INVOICE
When a business sells goods on credit it will issue
an invoice to the purchaser/customer.
Each business has its own style of invoice, but they
all contain the following information:
´ the name and address of the supplier
´ the name and address of the customer
´ the date
´ full details, quantities and prices of the goods
supplied
´ Details of trade discounts (if given)
´ Term and conditions of any cash discounts that
might be given
Invoice
DEBIT NOTE
A note issued by the customer/purchaser of goods
on credit to the supplier/seller to inform him of any
shortages, overcharges and faults.
(It is a request of reduction from supplier in the
invoice received)
Each business has its own style of debit note, but
they all contain the following information:
´ the name and address of the supplier
´ the name and address of the customer
´ the date
´ full details, quantities and prices of the goods
returned or overcharged
NOTE: When a price is included on a debit note, it is the price which
the customer was actually charged for those goods (the price after
the deduction of trade discount).
Debit Note
CREDIT NOTE
A credit note is a document issued by a supplier/seller
of goods on credit to the customer/purchaser to notify
of a reduction in an invoice previously issued(due to
any shortages, overcharges and faults).
(It is an acceptance of request from customer, by
supplier, of reduction in the invoice received)
Each business has its own style of credit note, but they
all contain the following information:
´ the name and address of the supplier
´ the name and address of the customer
´ the date
´ full details, quantities and prices of the goods
returned or overcharged
NOTE: Price on a credit note is the price on which the customer was
actually charged for those goods (the price after the deduction of
trade discount).
Credit Note
STATEMENT OF ACCOUNT
A statement of account is a document issued by, the
seller of goods on credit, to customer to summarise
the transactions for the month.
(It is a reminder issued at the end of each month
showing the summary of transactions for that month)
Each business has its own style of statement of
account, but they all contain the following
information:
´ the name and address of the supplier
´ the name and address of the customer
´ the date
´ the balance owing at the start of the period
´ invoices and credit notes issued
´ payments received
´ any cash discounts allowed
´ the balance owing at the end of the period
Statement of
Account
CHEQUE
A cheque is a written order to a bank to pay a
stated sum of money to the person or business
named on the order(payee).
Customers/purchaser paid their accounts by
means of a cheque.
Other methods of payment through the
banking system are
Ø credit transfers
Ø standing orders
Cheque
Cheque counterfoil Actual Cheque
RECEIPT
A receipt, issued by supplier/seller, is a written
acknowledgement of money received from
customer/purchaser and acts as proof of
payment.
NOTE: Where goods are sold for cash, the
customer/purchaser is usually provided with a
receipt.
Receipt
