The document contains 8 documents related to accounting transactions. The documents include purchase orders, delivery orders, invoices, bank receipts, debit notes, credit notes, payment vouchers, and official receipts. Each document is summarized including its purpose, importance, an example transaction, and the corresponding double entry record. The documents provide evidence and records of various business transactions between customers, suppliers, and banks.
The document contains 8 documents related to accounting transactions. The documents include purchase orders, delivery orders, invoices, bank receipts, debit notes, credit notes, payment vouchers, and official receipts. Each document is summarized including its purpose, importance, an example transaction, and the corresponding double entry record. The documents provide evidence and records of various business transactions between customers, suppliers, and banks.
The document contains 8 documents related to accounting transactions. The documents include purchase orders, delivery orders, invoices, bank receipts, debit notes, credit notes, payment vouchers, and official receipts. Each document is summarized including its purpose, importance, an example transaction, and the corresponding double entry record. The documents provide evidence and records of various business transactions between customers, suppliers, and banks.
The document contains 8 documents related to accounting transactions. The documents include purchase orders, delivery orders, invoices, bank receipts, debit notes, credit notes, payment vouchers, and official receipts. Each document is summarized including its purpose, importance, an example transaction, and the corresponding double entry record. The documents provide evidence and records of various business transactions between customers, suppliers, and banks.
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Attachment 1
QUESTION 1 ANSWER
a)
Loan from Maybank
Liabilities
b)
We owe a supplier
Liabilities
c)
Equipment
d)
Bank overdraft
e)
Inventory of goods held for sale
Assets
f)
Loan to Mr. Frank Woods
Assets
g)
Motor vehicles
Assets
h)
Premises
Assets
i)
Acoount payable for inventory
j)
Inventory
Assets
k)
Account receivable
Assets
l)
Owing to bank
Liabilities
m)
Loan from Mr Dee Jones
Liabilities
n)
Machinery
Assets Liabilities
Liabilities
Assets
QUESTION 2 ANSWER
Transactions
Assets
Effect Upon Liabilities
Owners
a We pay a creditor RM 310 by cheque
b Bought fixtures RM 175 paying in
cash
c Bought goods on credit RM 630
d The proprietor introduces another
RM 1200 cash into the business e Mrs. Jay Walker lends the business RM 2500 in cash f
A debtor pays us RM 50 in cash
g We return goods costing RM 90 to
Bank
Account
(-RM 310)
payable
Cash
(+ RM 310) No Effect
(-RM 175)
RM 610 by cheque
Fixtures (+RM 175)
Goods
Purchases
(+ RM 630)
(- RM 630)
Cash
No Effect
(- RM 1200)
No Effect
Capital (+ RM 1200)
Cash
Mrs. Jay
(+ RM 2500)
Walker
Cash
(- RM 2500) Account
(+ RM 50)
receivable
No Effect
(- RM 50) Account
Return
payable
inwards
(- RM 90) No Effect
( + RM 90) Office
supplier whose bill we had not paid
h Bought an office computer paying
Equity No Effect
Bank (- RM 610)
No Effect
No Effect
computer (+ RM 610)
QUESTION 3 ANSWER
ATTACHMENT 2 DOCUMENT 1: PURCHASE ORDER
1. Purpose of this document.
Purchase orders are documents sent from a buyer to a supplier with a request for an order. The type of item, the quantity and agreed upon price are generally printed on the purchase order the more specific the order, the more details included, the more effective the purchase order will be. (Wikipedia) 2. The importance of this document. A purchase order is used as a reference for business if a buyer receives their order and it does not comply with the desired specifications. A purchase order provides legal clarity and concrete instructions for the seller, as well as a concretepaper trail that can be used as a point of reference for when things go wrong. (Wikipedia) 3. Example of transaction in this document. The business paid USD 14595 to Jabba Green Computing for electronic devices
4. Double entry record.
Debit: Electronic Devices Credit: Bank
14595 14595
DOCUMENT 2: DELIVERY ORDER
1. Purpose of this document.
A delivery order is a document that ensures the items are being delivered in the same quality and quantity as you would purchase the items right from the store. Simply said, a delivery orders confirms that you receive the right amount of things you send/receive. (Ezine Articles) 2. The importance of this document. To ensure the quantities and qualities of the items that are ordered from the seller or sent to other party is exactly the same when purchased. If the items received is not at the same amount when purchased, the delivery order can be used as reference.
3. Example of transaction in this document.
Xin Cube Inc. sent 100 units of smartphone casings to Stanley 4. Double entry record. Debit: Stanley 100 Credit: Xin Cube Inc.
100
DOCUMENT 3: INVOICE
1. Purpose of this document.
It is an commercial document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the sale transaction only. This mean an invoice is a bill by a seller to a buyer to indicate the buyer to pay for the products or the services that provided by the seller. (Invoice Software, 2014) 2. The importance of this document. The information that are recorded in the invoice such as product detail, service information, seller information, contact information, etc. Can be used as an proof of payment and also represent the company or a business image. (Invoice Software, 2014)
3. Example of transaction in this document.
Xin Cube Inc. have recorded a total of 21 units of electronic devices with a total of USD 9933.00 paid from Synex Inc. 4. Double entry record. Debit: Xin Cube Inc. Credit: Synex Inc.
9933.00 9933.00
DOCUMENT 4: BANK IN RECEIPT
1. Purpose of this document.
A bank receipt contains detailed information about a financial transaction conducted at a bank. Generally includes the amount of the transaction, the date it occurred, and the employee number of the bank employee who conducted the transaction. Aside from transactions involving deposit accounts, bank receipts are also given to customers who make loan payments, credit card payments, and conduct other similar types of transactions. Banks provide account holders with a copy of the bank receipt and the bank also maintains its own records of all transactions. (WiseGeek) 2. The importance of this document. To avoid disputes relating to the details of transactions. Immediately after taking possession of the bank receipt, the account holder has the opportunity to dispute any information that is incorrectly recorded on the receipt. If an error occurs after an account holder leaves the bank and funds are deposited into the wrong account, the customer can use the bank receipt as a means of having the transaction corrected and funds deposited into the correct account. (WiseGeek) 3. Example of transaction in this document. Rahmah deposited RM 50 into lazada bank account to purchase a handbag. 4. Double entry record. Debit: Lazada
50
Credit:
50
DOCUMENT 5: DEBIT NOTE
1. Purpose of this document.
Debit note is used to inform the buyer that his or her account has been debited with stated amount. This document is used when a sales price is understated. 2. The importance of this document. A seller might issue a debit note instead of an invoice in order to adjust upwards the amount of an invoice already issued (as if the invoice is recorded in wrong value). 3. Example of transaction in this document. AA Textile have been informed that their account have been debited with RS 4000.00 into their account.
4. Double entry record.
Debit: AA Textile Credit:
4000 4000
DOCUMENT 6: CREDIT NOTE
1. Purpose of this document.
A statement that notifies the buyer that a certain amount of money has been credited to the buyer's account. 2. The importance of this document. A credit note is issued in various situations to correct a mistake, such as when an invoice amount is overstated, correct discount rate is not applied, goods spoil within guaranty period, or they do not meet the buyer's specifications and are returned. Also called credit memo. (Business Dictionary)
3. Example of transaction in this document.
Xin Cube Inc. have sent credit notes to Gary Butler stating that a total of USD 16800 from returned goods have been credited due to damages. 4. Double entry record. Debit: Gary Butler 16800 Credit: Xin Cube Inc.
16800
DOCUMENT 7: PAYMENT VOUCHER
42342 670
5 January 2015
RM Ahmad Hamid Abdullah Kareem RM 670 The Purchase of three chairs Ahmad Hamid Abdullah Kareem Najib Razak
1. Purpose of this document.
A document which can be used as proof that a monetary transaction has occurred between two parties. In business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a transaction, acting as a receipt, or indicating that an invoice has been approved for payment (Business Dictionary). 2. The importance of this document. The payment voucher is the final proof of payment and must be in the file to provide information in case of any future question. 3. Example of transaction in this document. Ahmad Hamid Abdullah Kareem received payment voucher from Najib Razak from the purchase of three chairs. 4. Double entry record. Debit: Ahmad Hamid Abdullah Kareem Credit: Najib Razak
670 670
DOCUMENT 8: OFFICIAL RECEIPT
1. Purpose of this document.
Official receipts are hard copies of financial transactions used by businesses for tax and accounting purposes. These documents include the vendor's name, goods sold, purchase price, the date, receipt number and other pertinent information. Official receipts may be printed or handwritten as long as all information is included (reference.com) 2. The importance of this document. the importance of official receipts are such as a proof of completeness of accounting records. Next, as a claim as deduction of refunds, minimizes audit and as a hard evidence to support the existence of the transaction recorded. 3. Example of transaction in this document. Tan Ah Meng have recieved a payment receipt from Testing Company after the company bought stationery from him.
4. Double entry record.
Debit: Tan Ah Meng 10.60 Credit: Testing Company 10.60
