Source Documents prove a transaction has taken place between a buyer and a seller.

Buying on credit – “Buy now pay later”

If a buyer would like to purchase a product they can fill in a purchase order and send it to the seller .

The seller will receive the purchase order then gather the products accordingly.

They will then send the product to the buyer along with a sales invoice and delivery note.

The buyer will receive the product along with a purchase invoice and a delivery note.

The delivery note will show the quantity of products that have been delivered

The invoice will show the cost/price along with the discounts provided

There are two discounts available; trade and cash discount

If the buyer has decided to buy a large quantity they may receive a trade discount

If the buyer pays early they may receive a cash discount

If the buyer is not happy with the product they may return it. The seller will send out a credit note to the buyer

Buying on cash – “Buy now pay now”

When someone pays on cash for a good they will receive a cash receipts

Bank Documents

When a person deposits cash into the bank, they would keep a paying in slip counterfoil

When a person writes a cheque to another person they will keep a cheque counterfoil

Bank statements will show any direct debits and standing orders.

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