Four Source Documents Used in Preparing Accounts Relating to Sales and Purchases

Running head: BUSINESS ACCOUNTS
Business Accounts
Name of the Student
Name of the University
Author’s Note

1BUSINESS ACCOUNTS
Table of Contents
Introduction......................................................................................................................................2
Four Source Documents Used in Preparing Accounts Relating to Sales and Purchases.................2
Cheque.........................................................................................................................................2
Receipts........................................................................................................................................3
Invoice and Bills..........................................................................................................................4
Cash Memo..................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2BUSINESS ACCOUNTS
Introduction
The accountants in the business organizations use different types of source documents or
record documents for the preparation of the different accounts relating to the sales and purchases.
These documents are needed for the correct preparation of the accounts. The aim of this report is
to discuss about four of these source documents.
Four Source Documents Used in Preparing Accounts Relating to Sales and Purchases
Cheque
Figure 1: Sample Cheque
(Source: Simkin, Norman and Rose 2014)
A cheque is considered as an instrument drawn upon a banker and it is payable on
demand. The banks issue a booklet that contains cheque forms to the account holders. Cheques
are used for making the payment to a specific person or company through writing the name of
the party after the word ‘pay’ and through striking off the word ‘bearer’ with a line printed on the
Cheque. Parties cross the Cheques by drawing two parallel transverses lines across the Cheques