Question

please i want a presentation about types of doucments in accounting information system

Answer 1

If you handle accounting, you must have noted that some documents always crop up in your reports. When accounting, we record financial transactions, analyze them, and make reports.

The importance of accounting to a business cannot be overemphasized more, especially as oversight agencies and tax authorities need these financial statements for various reasons.

Knowing what documents to use is just one part of the bigger picture. Here we compile a list of the most frequently used documents accounting.

1. Cash Memo
Businesses use cash memos as source documents. It is here that we record all sales and purchase transactions. It is one of the most recurrent accounting documents, which a business gives when it makes cash sales or receive in case of a cash purchase.

The cash memo contains details such as the number of sales, price of goods, applicable discount, and sales tax. Transactions in the cash memo go into the book of accounts and the auditor will always look to cross-reference the cash book and the cash vouchers.

2. Invoice
An invoice is also called a bill. Business must record all their credit sales or credit purchases in this document. For example, when a firm makes sales on credit, it prepares a sales invoice. It details the transaction in terms of the number of goods sold, the price per item, and the total amount sold. The same applies to purchases.

Invoices usually are written in duplicate, with the main (original) copy given to the buyer while the seller keeps the duplicate.

An invoice becomes a bill when the buyer or purchasing entity receives the original invoice copy.

3. Receipt
Businesses use the receipt as proof of payment for goods and services. It is a source document that a seller prepares on account of receiving cash from a second party.

Also prepared in duplicate, the original copy goes to the person giving out cash or paying. The seller keeps the duplicate as a record of the transaction and will show payment details including name, date, the total amount paid, and type of payment (cash/cheque).

4. Pay in Slip
The pay in slip is a proof of transaction document received from a bank for depositing money into a bank account.

The process involves filling up a form at the bank, with details of the depositor, date of transaction and amount deposited.

Pay-in-slip must be signed by the bank clerk with the official bank stamp on the counterfoil. Bookkeepers use the pay in slip counterfoil as a source document for recording the transaction.

5. Cheque
The cheque is one of the most used financial accounting documents. The document is used for financial transactions and is payable once presented to a specified banker. The cheque is an unconditional order in which an entity signed signs directing the banker to pay a certain sum of money. The payee is the person whose details appear on the instrument.

Cheques can be “crossed” which means the cheque is payable to the account of the payee only.

6. Debit Note
We use the debit note as an evidence document. The note is sent to an individual or business against which we have the debit. Businesses draw debit notes against entities from which they anticipate recovering certain amounts of money. For example, if you draw a debit note to a supplier, you expect them to return defective or damaged goods.

Businesses also use a debit note in cases where there is an overpayment. You must indicate all the necessary details in a debit note, including the date and amount debited.

7. Credit Note
Businesses use a credit note to show that they have credited a given party as indicated on the document. The document is written, for example, to a purchaser to show that the business has credited that transaction in their books.

You can prepare a credit note in case you make a payment that turns out to be less than it should have been.

Details are like in debit note. However, easily distinguish between the two by the red ink used to write the credit note.

8. Voucher
A voucher is a business document that records what type of transaction is to be recorded in financial books. Vouchers are prepared using source documents and identify transactions as debit and credit.

There are two types of vouchers:

Cash Voucher
Non Cash Voucher
Cash vouchers include receipt and cheque payments while non-cash vouchers involve the debit note and credit note.

9. Remittance Advice
We use the Remittance Advice to detail payments sent to a supplier, including whether it’s an invoice or offset credit note.

10. Account statement
This is a document sent out by a supplier to a customer listing the transactions on the customer’s account, including all invoices and credit notes issued and all payments received from the client.