Question

You have been asked to provide the details of what might be required to satisfactorily record details of sales made at one of the organisation’s revenue centres.

a. What documents might you need to help you prepare accurate records? List and describe five source documents.

b. List five categories of information which you might need to record.

Answer 1

Documents which might be useful to prepare accurate records are noted as under:

1.Cheque butts – the part of the cheque that remains in the cheque book when you tear off the cheque

2. Credit notes – used when goods are returned to a supplier

3. Adjustment notes – used to correct an error in a previous document

4. Purchase orders – the list of goods/services you want supplied in an organisation

5. Invoices – a request for payment for goods or services delivered by a supplier when GST has not been charged

b. Categories of information which might be needed to record are as under:

1. The Customer name

2. Customer account number

3. The date of which the transaction occurred

4. Selling price

5. Whether payment made in cash or cheque

6. Items purchased

7. GST