Lesson Note on the Source Documents For JSS3

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Examples of source documents are:

1. Sales invoice
2. Purchase invoice
3. Returns inwards
4. Returns outwards
5. Credit notes
6. Debit notes
7. Receipt for Payment Made
8. Vouchers

SALE INVOICE: When businesses are made, the seller will issue a document to the buyer. This will contain a list of goods sent, with prices as well as the date of dispatch. This document is called an invoice.

RETURN INWARD: When goods are returned by a customer or there is a dispute concerning goods, an allowance is made by the firm. To effect this allowance in the customer’s account, a credit note will be sent to him indicating that his account has been credited by the amount of the allowance. This will reduce the amount the customer owes the supplier.

RETURN OUTWARD: When goods are returned to a supplier, a document called a debit note is sent to him, stating the amount of allowance to which the firm is entitled. This note will cover any allowance due before the goods bought were deficient in some ways. The closing balance on the return outward journal is credited to the purchases journal and the transfer entries will be effected by debiting the individual’s supplier’s account.

 CREDIT NOTE: A credit note is normally printed in red. This is to distinguish it from an invoice. It is issued by the seller when there is a return inward by the buyer. This may occur if the goods supplied by the seller are faulty, overcharged or not supplied according to the specification in the Goods Received Note. When the goods are received by the seller, he will credit the buyer’s account with the amount of the goods returned by the buyer. 

EZE Law Enterprises

14 BENSON RD, ONITSHA

Credit Note

Chukwudi& Sons Ltd,                                                                                                    14^th August,2013

Wire Road, Otukpo                                                                                                         No

 

Date	Particular	N                      K	N                            K

DEBIT NOTE: Debit note is issued by the seller to the buyers to notify him that the defected goods which he returned have been received. This note will show the amount the seller owes the buyer or in most cases that the amount shown in the note has been debited to his (buyer) account.

RECEIPT FOR PAYMENT MADE: This is got when business transactions are made strictly on a cash basis. To make the transaction effective, the seller will issue a document to the buyer. This document will show among others:

• that the buyer of the goods has paid and
• the quantity and quality of the buyer purchased

 GEOLAD Nigeria Limited

46, ALEXANDER RD LAGOS

Cash Receipt

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