Source documents

• Source document


  • Financial document that a business uses to record the details of its transactions. Describes all the basic facts of a transaction: the purpose, date, and amount
• Transaction


  An action between two parties where buyers and sellers exchange goods or services for money
• Internal source document

  Issued by the business itself, original given to client and duplicate kept by business
• External source document


  Issued by other businesses like suppliers, original given to client and duplicate kept by business
• Receipt


  Written or printed document handed to a client when money is received, specifies amount, name, and date
• Information on a receipt

  • Sequence number
  • Date
  • Name of person money received from
  • Total amount in words and figures
  • Reason for money received
  • Signature of person receiving money
• Deposit slip


  Document used when depositing money into a bank account, includes account name, date, signature, account number, and total cash deposited
• Cash register slip

  Slip printed by a cash register, duplicate kept by business and original given to customer, includes business name, date, item details, amount paid, and change
• If a business doesn't have a cash register, they use a receipt book instead
• Electronic Fund Transfer (EFT)


  Transfer of money from one bank account to another either within the same financial institution or different financial institutions via digital devices like a cell phone or tablet without the intervention of the banking staff
• EFT

  • Has a reference number that must appear on the payment authorization form
  • The EFT number serves as a source document so that the specific payment can be easily traced in the future
• Bank statement

  • Shows the client how much money has been deposited into the bank account and how much money has been withdrawn from the account
  • Reflects the bank's transactions with the business
  • The business can access the bank statements at any time during the month and at the end of the month
• Cash invoice

  • Contains more information than the cash register slip
  • Is a request for payment
  • Includes the business information, client information, invoice number, details of the transaction, total amount payable, and banking details
• Businesses that receive larger payments or require more information on their transactions for themselves or for their clients prefer to use a cash invoice rather than a cash registered slip