VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. 3.4
SOURCE DOCUMENTS FOR
CREDIT TRANSACTIONS

2. Video of this presentation at…
YouTube Channel for VCE Accounting

3. © Michael Allison. Author’s permission required for external use.
3.4 SOURCE DOCUMENTS FOR
CREDIT TRANSACTIONS
Cash Transactions Credit Transactions Other
Cash receipt
Cheque butt
Sales invoice
Purchase
invoice
Memo
Statement of
account
Order
Quote

4. © Michael Allison. Author’s permission required for external use.
3.4 SOURCE DOCUMENTS FOR
CREDIT TRANSACTIONS
Business
Sales invoice
Customers
purchase goods
and services from
the firm on credit
Business issues the
customer a sales
invoice…
Business
purchase goods
and services from
suppliers on
credit
Supplier issues the
business a purchase
invoice…
Customers
Purchase
invoice
Suppliers
Original CopyOriginal Copy

5. © Michael Allison. Author’s permission required for external use.
 Every invoice comes with what are called the credit terms, e.g.
Terms: 5/30, n/60
3.4 SOURCE DOCUMENTS FOR
CREDIT TRANSACTIONS
5/30 – Discount period
• 5 = the % discount given
• 30 = number of days for
discount to be valid
n60 – Due date
• The number of days before the
account must be paid
• After this, account is overdue
Date of
credit sale
30 days 60 days
5% discount Due Date

6. © Michael Allison. Author’s permission required for external use.
TGS Clothing Supplies Inv. 101
ABN 03 172 564 495
65 Feathertop Road
Melbourne 3000 Date: 15/1/2015
To: P. Dunphy
19 Modern Avenue
Kew 3101
Item Qty Price Subtotal
Jumper 3 70.00 210.00
Belt 1 40.00 40.00
Total owing 275.00
Terms: 5/30, n60
Seller’s name
Buyer’s name
Invoice no.
Date of sale
Amount owed
by debtorCredit terms
3.4 SOURCE DOCUMENTS FOR
CREDIT TRANSACTIONS

7. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
SQ9 X
Ex3.3 X
Ex3.4 X