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Pre Ig ch2 Notes

This document discusses various business documents used in accounting: 1. An invoice is issued by a supplier to a customer and contains details of goods supplied, quantities, prices, supplier and customer information. A debit note requests a reduction to an invoice and a credit note notifies a reduction. 2. A statement of account is issued monthly by a supplier to a customer summarizing transactions, opening/closing balances, invoices, payments and discounts. 3. A cheque contains the date, payee, amount in numbers and words, and cheque number. It orders a bank to pay and can serve as a receipt for payment. A receipt is written proof of money received.

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Daksh Jain
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44 views4 pages

Pre Ig ch2 Notes

This document discusses various business documents used in accounting: 1. An invoice is issued by a supplier to a customer and contains details of goods supplied, quantities, prices, supplier and customer information. A debit note requests a reduction to an invoice and a credit note notifies a reduction. 2. A statement of account is issued monthly by a supplier to a customer summarizing transactions, opening/closing balances, invoices, payments and discounts. 3. A cheque contains the date, payee, amount in numbers and words, and cheque number. It orders a bank to pay and can serve as a receipt for payment. A receipt is written proof of money received.

Uploaded by

Daksh Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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D. G.

Khetan International School

Academic year: 2021-22


Grade: PRE IGCSE
Unit : III
Subject: Business Studies

NAME :________________________

DIV : _______ ROLL NO: ________


1

Chapter 2 : Business Documents

1. Invoice : An invoice is a document issued by the credit supplier of goods on credit showing
details , quantities and prices of goods supplied .

2. Invoice contains following information :


The name and address of the supplier .
The name and address of the customer
The Date
Full details , quantities and prices of goods supplied.

Note : Some times , the supplier allows the customer trade discount . This is a reduction
in the price of the goods supplied . Trade discount is usually on bulk purchases .

3. Debit Note : It is a document issued on purchase of the goods on credit to request a reduction in
the invoice received .

4. Debit Note contains following information :


The name and address of the supplier
The name and address of the customer
The date
Full details of the goods quantities ,price of the
goods returned or overcharged .
The reason for which goods are being returned .
2

5.Credit note : Is a document issued by a seller of goods on credit to notify of a reduction in an


invoice previously issued .

6. Credit note contains following information:


The name and address of the supplier
The name and address of the customer
The date
Full details , quantities and prices of the goods
returned or overcharged

Note : The customer receives the original credit note and uses it to record the purchase returns .
The supplier keeps a copy of the credit note and uses it to record sales returns.

7. Statement of Account : Is a document issued by the seller of goods on credit to summarise


the transactions of the month.

8. The statement of account contain the following information:


The name and address of the supplier
The name and address of the customer
The date
The balance owing at the start of the
period
The Invoices and credit notes issued
Payments received
Any cash discounts allowed.
The balance owing at the end of the
period.

Note : Neither the supplier nor the customer makes any entries in their accounting records in
respect of statement of account .
A statement of account is a reminder to the customer of the amount outstanding .
3

9. Cheque : Is a written oreder to a bank to pay a stated sum of money to the person or business
named on the order.

10. The cheque containts the following things in it:

The date on which it is written


The name of the person /company issued for
The Amount in numericals and words.
The cheque number which is pre printed on it

11. Receipt : A receipt is a written document of money received and acts as a proof of payment.

Note : Since a cheque passes through the banking system it can act as a receipt ,so many business
do not issue receipts if accounts have been paid by cheque. Where goods are sold for cash ,
the customer is usually provided with receipt.

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