Source Documents

Explanation

A source document is an original document that serves as written evidence that a business transaction has taken place between the business and another party such as a customer, supplier or bank. The source document is the basis for the entry in the books of prime entry (journals or the cash book) before it is posted to the ledger. Without a source document, an accounting entry cannot be supported and is not valid for audit purposes. In Content Standard 3.2, students must recognise the eleven main source documents, understand the function of each one, and be able to identify the correct document for each type of transaction.

For cash transactions, several source documents are important. A Bil Tunai (cash bill) is issued by the seller when a cash sale occurs, showing the details of goods, quantity, price and the amount paid immediately. A Resit (receipt) is proof of receiving cash or a cheque from a customer, and is issued by the party who receives the payment. A Slip Daftar Tunai (cash register slip) is printed by the cash register in a retail shop to record daily cash sales. A Keratan Cek (cheque counterfoil) is the stub remaining in the cheque book after a cheque is issued, and serves as evidence of a payment made by cheque. A Slip Bank (bank pay-in slip) is used when the business deposits cash or cheques into its bank account and serves as proof of the deposit.

For credit transactions, the main source document is the Invois (invoice). An invoice is issued by the seller to the buyer when goods are sold on credit. It contains the details of goods, list price, trade discount (if any) and the amount to be paid later. For the seller, the invoice is the source for recording a credit sale; for the buyer, the invoice received is the source for recording a credit purchase. A Nota Debit (debit note) is issued to increase the amount owed by a customer, for example when the original invoice undercharged the customer or when there are additional charges such as packing costs. A Nota Kredit (credit note) is issued by the seller to reduce the amount owed by a customer, for example when the customer returns goods (sales returns) or when the original invoice overcharged the customer.

In addition, there are source documents in the form of vouchers and memos. A Baucar Pembayaran (payment voucher) is an internal document that shows the approval and details of a payment made by the business, and usually has supporting evidence such as an invoice or receipt attached. A Baucar Tunai Runcit (petty cash voucher) is used to record small expenses paid from the petty cash fund, such as buying stamps, tea or stationery. A Memo is an internal document that records transactions not involving an outside party, for example the taking of goods by the owner for personal use (drawings) or the correction of errors.

The core skill in this standard is identifying the document for a transaction. For every transaction, students must be able to determine the correct source document: a cash sale produces a cash bill or cash register slip; the receipt of money produces a receipt; a credit sale or purchase produces an invoice; the return of goods produces a credit note; an additional charge produces a debit note; a payment by cheque produces a cheque counterfoil; and internal transactions such as drawings produce a memo. Understanding the relationship between the type of transaction and its source document must come before students learn how these documents are recorded in the books of prime entry and the ledger.

Worked examples

Practice

Exam tips

Key terms

Source Document (Dokumen Sumber)

The original document that serves as written evidence of a transaction and the origin of an accounting entry.

Invoice (Invois)

A document issued by the seller to the buyer for a sale or purchase made on credit.

Credit Note (Nota Kredit)

A document issued by the seller to reduce the amount owed by a customer, e.g. for goods returned or an overcharge.

Debit Note (Nota Debit)

A document issued to increase the amount owed by a customer, e.g. for an undercharge or an additional charge.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

Other Content Standards in this chapter