Unit #8 – Source Documents

Source Documents
Source Documents
 Companies use Source Documents
(as evidence) and enter them into the
General Journal to record all of the
business’ transactions.
 Filed for future reference by
accountants or the government
 The Objectivity Principle
 Accounting records should be based on
the objective evidence provided by
source documents to support the values
used in recording transactions
Source Documents
 There are 8 source documents that
we will discuss
 Each source document is given for a
different reason
 A hard copy (or digital copy) should
always be kept on file
GAAP – The Cost Principle
 The accounting for purchases must be
at the cost price of the purchaser
 This is why we keep receipts – proof
 Example: Buy an office for $140,000
in 2006. In 2009 it has a value of
$210,000. What is recorded in the
Source Documents
 What are they?
Cash sales slip
Sales Invoice
Dual purpose sales slip
Purchase Invoice
Cash Receipt List
Cheque Copy
Bank Debit Memo
Bank Credit Memo
Today’s Work
 Work with a group of 3-4 to fill out
the handout you will be provided with
 For each source document
 When is it issued?
 When issued, what account is debited?
 When issued, what account is credited?
 Page 147
 #16 b,c