CHAPTER 6 THE JOURNAL

AND SOURCE DOCUMENTS

Source DocumentsBusiness papers that show the nature of a transaction and provide all the information necessary to account for the transaction properly

Example #1 ~ Cash Sales Slip

Example #1 ~ Cash Sales Slip

customer

Pre-numbered slip to ensure none are lost

Nature of the transaction

Example #1 ~ Cash Sales Slip

Journal Entry for a Cash Sales Slip:

DR CRBank 35.90 Sales 35.90

Total for entry

Example #2 ~ Sales Invoice

Example #2 ~ Sales InvoiceCustomer to be charged

When payment is due

Nature of transaction Preset serial

number

Example #2 ~ Sales Invoice

Journal Entry for a Sales Invoice:

DR CRA/R – S.&S. Boatworks 835.70

Sales 835.70

Total for entry

Example #3 ~ Point of Sale Summaries

Example #3 ~ Point of Sale Summaries

A till printout for Visa, Mastercard and Debit card transactions for one month

Example #3 ~ Point of Sale Summaries

Journal Entry for POS Summaries

DR CRBank 734.18 Sales 734.18

Total for entry

Example # 4 ~ Purchase Invoice

Example # 4 ~ Purchase Invoice

Name of vendor credited in Account Payable

General Engineering’s Invoice number

Shows how long Masthead Marine has to make payment

Example # 4 ~ Purchase InvoiceJournal Entry for Purchase Invoice:

DR CREquipment Repairs Expense 241.50 A/P – General Engineering241.50

Total used for entry

Example #5 ~ Cheque Copy

Example #5 ~ Cheque Copy

Who the cheque is for

Reference number

Owner’s Signature

Reference number is repeated on tear off portion

Details of payment

Example #5 ~ Cheque Copy

Journal Entry for a Cheque Copy:

DR CRA/P – Streling Spars 1802.90

Bank 1802.90

Total for entry = cheque total

Example #6 ~ Cash Receipts Daily Summary

Example #6 ~ Cash Receipts Daily Summary

Example #6 ~ Cash Receipts Daily Summary

Journal Entry for a Cash Receipts Summary:

DR CRBank 2142.24 A/R – A. Baldwin 375.00 A/R – F Perri965.52 A/R – Pier 10 Marina801.72

Example #7 ~ Bank Advice

Example #7 ~ Bank AdviceTells whether the account has been debited or credited

Explanation

Date of entry

Example #7 ~ Bank Debit Advice

Journal entry for a Bank Debit Advice:

DR CRBank Charges and Interest 113.50

Bank 113.50

A Bank Debit Advice advises the company that an expense has been debited.

Example # 8 ~ Bank Credit AdviceIf a company generates revenue from interest then a Bank Credit advice is used to notify them of the increase in their equity.

Sample Journal Entry for a Bank Credit Advice:DR CR

Bank 43.76 Interest Earned 43.76

SUMMARY