source documents (accounting

• SOURCE DOCUMENTS

  • identify and describe transactions and events entering the accounting process.
• The journal is a chronological record of the entity's transactions.
• THE LEDGER

  A grouping of the entity's accounts is referred to as ledger. Although some firms may use various ledgers to accumulate certain detailed information, all firms have a general ledger.
• THE TRIAL BALANCE IS A LIST OF ALL ACCOUNTS OR CREDIT BALANCES.
• • DEFERRAL is the postponement of the recognition of an expense already paid but not yet incurred or of revenue already collected but not yet earned.
• • ACCRUAL is the recognition of an expense already incurred but unpaid, or revenue earned but uncollected.
• ALLOCATING ASSETS TO EXPENSES - entities often make expenditures that benefit more than one period. These expenditures are generally debited to an asset account.
• • PREPAID EXPENSES are assets, not expenses. At the end of an accounting period, a portion or all of these prepayments may have expired.
• ADJUSTMENTS FOR DEFERRALS

  • allocating assets to expenses
  • prepaid expense
• SOURCE DOCUMENTS

  • sales invoice
  • bill of lading
  • statement of accounts
  • official recipt
  • deposit slips
  • check
  • purchase requisition
  • purchase order
  • receiving report
  • credit memorandum
• • Sales Invoice is prepared by the seller of goods and sent to the buyer. This document contains the name and address of the buyer, the date of sale and information-quantity, description and price-about the goods sold.
• Bill of Lading is a document issued by the carrier-trucking, shipping or airline-that specifies contractual conditions and terms of delivery such as freight terms, time, place and the person named to receive the goods.
• • Statement of Account it's a formal notice to the debtor detailing the accounts already due.
• • Official Receipt - evidences the receipt of cash by the seller or the authorized representative. It notes the invoices paid and the other details of payment.
• Deposit slips - are printed forms with depositor's name, account number and space for details of the deposit.
• • Check is a written order to the bank by a depositor to pay the amount specified in the check from his checking account to the person name in the check
• 1. Purchase Requisition - is a written request to the purchaser of an entity from an employee or user department of the same entity that goods to be purchased.
• 1. Purchase Order - is an authorization made by the buyer to the seller to deliver the merchandise as detailed in the form.
• • Receiving Report is a document containing information about the goods received from a vendor.
• 1. Credit Memorandum - is a form used by the seller to notify the buyer that his account is being decreased due to errors or other factors requiring adjustment.
• FOB shipping point, the buyer shoulders the shipping costs
• FOB destinations, the seller bears the shipping costs.