Simple documents in the accounts office

1. SIMPLE
DOCUMENTS
USED IN THE
ACCOUNTS
OFFICE
Section 9
Objective 3
Ayanna Charles-Ford

2. INTRODUCTION
• The paper trail generated by companies when a
payment is made is referred to as source
documents.
• These are essential in the bookkeeping and
accounting process, also in an audit.
• Properly prepared documents and records can
reveal the financial position of a business, its
debtors and creditors, gains and loss and their
sources.

3. OVERVIEW
• time card
• pay slip or payroll;
• currency memorandum/payroll change
sheet;
• debit and credit notes;
• simple statements of account; and,
• cheques.

4. Time card
• This is a card employees use to
clock in their attendance at the
workplace or software that can be
used for tracking the time and
attendance of workers and
calculating their pay.

5. Abbreviations on a time card
RT
•Regular time (normal working hours from 7:00
a.m. to 4:00 p.m. on Mondays through Fridays) –
payment at the regular rate.
1½T
•Time and a half (any time after 4:00 p.m. on
Mondays through Fridays) – payment at one and a
half times the regular time.

6. 2T
•Double time (Saturdays) – payment at double the
regular time.
3T
•Triple time (Sundays and public holidays) –
payment at three times the regular rate.

8. Payslip
• This shows the gross pay, all deductions
and the net pay that the employee
receives

9. Currency memorandum/Payroll
change sheet
• It is important in order:
– To determine how many of each
denomination of notes and coins to allocate
for each worker.
– To calculate the total number of each
denomination in notes and coins to ask for at
the bank in order to pay employees.

10. Debit note
• A document issued by a seller to a
customer indicating that the price quoted
in an invoice has been increased and
his/her account has been debited by this
amount as a result of either:
– An error made by the seller or his/her
employee resulting in undercharge or
– Carriage, insurance, freight and duty (or other
costs) that were not known at the time were
mentioned when the invoice was made up.

11. Credit note
• A document, often printed in red, issued
by a seller to a customer indicating that
the price quoted in an invoice sent to
him/her has been reduced and his/her
account has been credited as a result of:
– An overcharge or typographical or arithmetical
error
– Defective quality, e.g. damaged goods being
returned

12. – Insufficient quantity, e.g. shortage in number
or weight
– Wrong kind of goods, i.e. not the ones
ordered
– Goods lost or misplaced during transit
– Bottles, containers, packing cases or crates
returned to the seller.

13. Statement of account
• The statement summaries the transactions
between a supplier and a customer over a
month.
• Key information that you must be able to enter
and describe is as follows:
– Balance owing: the amount carried forward as unpaid
from the last month’s statement.
– The debit column: this shows the amounts the
customer is being charged this month, either because
an invoice or a debit note has been issued.

14. – The credit column: this shows the amounts that the
supplier is deducting from the account, either
because the customer has made a payment or
because a credit note was issued.
– The balance column: this shows a running balance,
because it is recalculated after every individual debit
or credit has been added.
– The amount due: this is the final balance when all the
calculations have been completed.

15. Cheques
• A cheque is a signed, unconditional
written order from a customer, instructing
a bank to pay on demand from his/her/its
account over the counter or into another
account a stated sum of money to, or to
the order of, a specified person/company
or to bearer.

16. KEY TERMS
Payee
•This is the person to whom the cheque is
made out and who is receiving payment.
Drawer
•Is the person who wrote the cheque and is
drawing money out of their account to pay it.

17. REFERENCES
• Carysforth, C. et al (2012), Office Administration
for CSEC – A Caribbean Examinations Council
Study Guide, Nelson Thornes UK.
• Peavler, R. (2018). The source document in
accounting transaction. Retrieved from
https://www.thebalancesmb.com/the-source-
document-in-an-accounting-transaction-393005
• Ramtahal, F. (2013). Office Administration, (2nd
ed.) Caribbean Educational Publishers Trinidad.