Special Journal - Source Documents

Source Documents

When a transaction occur between a business and an external party, a source document will usually be created. Source documents are business forms that provide evidence of each transaction and give the details that are entered later into a one of the journals in a computer accounting system. Some computer systems, such as payroll systems, also generate transactions that are recorded in one or more journals, but without paper source documents.

• Receipt when a business receives money or cheques over the shop counter it will usually issue a receipt. A receipt is a document that acknowledges that money or cheques have been received.
• Check book stub
• Invoice includes business name (sellers) and address, invoice number, ABN, buyer details, date, description of goods purchased, quantity, unit price, amount (per item x quantity), total price and GST. An invoice is a document that records the details of a credit sale of inventory. The origin of the invoice is either delivered with the goods or sent separately to the customer. A number of copies are kept by the seller.
• Delivery note is a document that sets out the type and quantity of the inventory delivered to the purchaser. When the inventory arrives at the premises of the purchaser, the delivery note is signed by the purchaser and is evidence that the goods ordered have been delivered. A copy is kept by the seller.
• Purchase order
• Purchase requisition
• Credit note is a document issued by a seller that acknowledges that a customer is entitled to receive a reduction in the amount owing on goods purchased on credit.

Folio Number: Every page of a journal is numbered. This number is known as a folio number. The folio number is used as a cross reference between the journal and the ledger accounts. The use of folio numbers makes it easy to refer back from the ledger account to the journal entry or forward from the journal entry to the ledger account. In addition, folio numbers are a check that all journal entries have been recorded in the ledger system.

Each ledger account has a folio number column. The name and page of the journal from which the ledger entry came is recorded in the folio number column.

Each journal has a folio number column. The number of the ledger account to which the journal entry was posted is recorded in the folio number column of the journal.

Cash money, eftpos, cheques, credit cards. Receipts and payments.

Credit sale of inventory on credit Purchases.

Cash Journals record items sold or purchased with cash and they also record income received (debtor payment, interest) and daily expenses. If the transaction is of a cash nature, you must be convinced that money/cheque/credit card was also exchanged at the time that the good or service was exchanged.

Credit Journals record purchases or sales on credit. If the transaction is of a credit nature, you will assume that the cash will be exchanged after the exchange of the good or service. At this stage, these will only be concerned with your firm acquiring stock and the selling of that stock to customers who will pay later.