1. Chapter 3 Sources, records and the books of prime entry
The role of source documents
Sales and purchase day books
Cash books

2. Transactions
Record
Source documents
Books of prime entry

3. 1 Source documents
Source document is an individual record of a business transaction.-----raw material for later entries. eg. sales invoice
Most business transactions revolve around the purchase and sale of goods and thus most source documents relate to either of these items.

4. 1.1 types of source document
1).Sales and purchase orders
A purchase order is an agreement to purchase goods/services from a supplyer.
A sales order is an agreement to sell goods/services to a customer.

5. 2). Goods received notes (入库单）
GRNs record a receipt of goods, most commonly in a warehouse.

6. 3). Credit note(贷项通知单）
credit notes is a document relating to returned goods when a customer has been overcharged. It sent out by supplier.
是购货方退货后，由销货方开具的，用于减去最初发票金额的书面文件。

7. 4). debit note (借项通知单)
Debit note is issued to a supplier as a means of requesting a credit note. It sent out by customer
是购货方开具给销货方用于索要credit note ,以便减少发票金额。

8. 5). Sales and purchase invoices
when a business sells goods or services to a credit customer it sends a sales invoice to the customer.
the details on the invoice should match the details on the sales order.
the invoice is a request for the customer to pay what he owes.
to the customer, the invoice represents a purchase and thus he will refer to it as a purchase invoice.

9. 2. Books of prime entry Sales day book: record credit sales
Books of prime entry are the books where transactions are recorded for the first time.
Involved:
Sales day book: record credit sales
Purchase day book : records credit purchase
Sales returns day book: records credit note raised
Purchase returns day book :records creidt notes recived from suppliers

10. Sales and purchase day books

11. Cash books

12. Cash books (cont’d)

13. Cash books (2)