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International GCSE Accounting Student Book Sample

Igcse accounting

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NAMSHIDA. N. S Noushad
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45 views8 pages

International GCSE Accounting Student Book Sample

Igcse accounting

Uploaded by

NAMSHIDA. N. S Noushad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
Pm Le Pee pce LU Un CUS SSeS ‘A. Itis vital to nave a thorough understanding of the diferent types of accounting documentation co BUSINESS Cocttany JOURNALS ry) Dyer Eo Erect Pevecy ‘A. Figure 4.1 Business documentation SI financial statements documents produced by an organisation to show the financial status of a business at a particular time, including the income ‘Statement and Statement of Financial Position LEARNING OBJECTIVES CU ek DEO Me eu Pee ECU eg cy ey Pec Poe ec) cash receipt GETTING STARTED CAR ue eeu Se CS AME RRC M ee munud Noe ee ROC a Oe ee TAM ECC check that you receive all the monies you are due, and to make ST er eens ‘When you go shopping, do you keep your receipts? What do you do with them? Have a look at the information on them. Have you ever bought anything with a bank card? Do you keep that receipt and check it off against your bank statement to see if there are any mistakes? This is ‘what you should do and this is why businesses have to look after their business documents. How many receipts do you have each day? How many receipts do you think a company like McDonald's issues each day? ee ee ee eee Te et All businesses and organisations are involved in trading. Trading is the buying and selling of goods and/or services so that you can make a profi. ‘The financial transaction of buying and selling involves some very important, documents, including: source/business documents; journals and daybooks; ledgers; tral balances; and financial statements, as shown in Figure 4.1 Both the buyer and the seller need these documents. ‘These documents have been in general use for many years. They are part of an established procedure. If the documents are used properly, they help trading to proceed smoothly, They can also be used to quickly solve any disputes between a buyer and a seller. Both parties use the same documents, and they follow a standard sequence. Figure 4.2 shows the normal trading documentation sequence. whole or in part. ©Pearson 2019 discretion, Not for resale, circulation or distributio Uncorrected proof, all content subject to change at publ 4 KEY POINT ‘Apurchase order is normally raised by the customer's purchasing office ‘and then sent to the supplier. Once ithas been accepted by the supplier, 2 formal contract exists between the ‘wo parties. An example of a purchase ‘order is shown in Figure 4.3. KEY POINT ‘Aformal contract is a contract that is bbound by law as it has been signed by both parties. Pee epee LU Invoice Sent by supplier to buyer when goods are delivered, advising of amount owed Credit Note Sent by supplier to buyer to erect buyer forthe return of goods ‘A. Figure 4.2 Flow of source documents Ce ita it ait When a business or organisation decides to buy goods or use the services of another company, it usually issues a purchase order. This document contains the following information: name and address of supplier ™ quantity required m purchase order number m delivery date 1m date of order ™ authorised signature of a senior § details of the goods or services ‘member of the company, such es ‘ordered including part numbers ie Buyer or catalogue references. PURCHASE ORDER Gramson’s Sports ‘School Lane, Lincoln, LN 1Pt Tel 0131 874428 ‘order number: 4355, Rivect Rugby & Football Club date: 6 April 2017 Jacks Lane Ipswich IPL AY Please

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