Level: Easy
Easy Worked Examples: Business Documents as a Source of Information
Six easy examples on preparing source documents, calculating trade and cash discounts, and matching documents to cash and credit transactions.
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Example 1: Preparing a Cash Bill
Question
Solution plan
A Cash Bill is the source document for a cash sale. Compute each line (quantity x unit price), then add the lines to get the total the customer must pay.
| Quantity | Particulars | Unit Price (RM) | Amount (RM) |
|---|---|---|---|
| 10 | Exercise books | 2 | 20 |
| 5 | Pens | 3 | 15 |
| Total | 35 |
Answer
The Cash Bill total is RM35. The Cash Bill serves as proof of a cash sale and is the source document for recording the sale.
Where marks are usually lost
Example 2: Preparing a Receipt
Question
Solution plan
A receipt is issued by the party receiving money as proof that money has been received. Record the payer, the purpose, and the amount received.
| Particulars | Amount (RM) |
|---|---|
| Received from: Encik Lim | |
| Settlement of debt in cash | 500 |
| Total received | 500 |
Answer
The receipt amount is RM500. The receipt is proof of money received and the source document for recording the cash received.
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Example 3: Calculating Trade Discount
Question
Solution plan
Trade discount is a reduction off the list price. Trade discount = list price x rate (10%). Net price = list price minus trade discount. Trade discount is NOT recorded in the accounts.
| Particulars | RM |
|---|---|
| List price | 1,000 |
| Less: Trade discount (10%) | 100 |
| Net price | 900 |
Answer
The trade discount is RM100 and the net price payable is RM900.
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Example 4: Calculating Cash Discount
Question
Solution plan
A cash discount is given for paying within a set period. Cash discount = amount owed x rate (5%). Amount paid = amount owed minus cash discount. This amount appears on the Payment Voucher / Cheque Counterfoil.
| Particulars | RM |
|---|---|
| Amount owed | 2,000 |
| Less: Cash discount (5%) | 100 |
| Amount paid | 1,900 |
Answer
The cash discount is RM100 and the actual amount payable is RM1,900.
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Example 5: Preparing a Petty Cash Voucher
Question
Solution plan
A Petty Cash Voucher is the source document for small expenses paid out of petty cash. List each expense and total them to get the amount paid.
| Particulars | Amount (RM) |
|---|---|
| Postage stamps | 12 |
| Office pens | 8 |
| Total | 20 |
Answer
The Petty Cash Voucher total is RM20. The voucher is the proof and source document for the petty expenses paid by the petty cashier.
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Example 6: Matching Documents to Cash and Credit Transactions
Question
Solution plan
Each transaction produces a specific source document. Cash sale -> Cash Bill; money received -> Receipt; goods returned by the buyer -> Credit Note received from the supplier; money banked -> Bank/Deposit Slip. Identify the document flow between buyer and seller.
| Transaction | Type | Source Document |
|---|---|---|
| (a) Sale of goods for cash | Cash | Cash Bill |
| (b) Receipt of debt payment | Cash | Receipt |
| (c) Return of faulty goods to supplier | Credit | Credit Note (received) |
| (d) Cash banked | Cash | Bank Slip |
Answer
(a) Cash Bill, (b) Receipt, (c) Credit Note, (d) Bank Slip. Besides source documents, the business also receives non-source documents such as the Statement of Account from the supplier and the Bank Statement from the bank to check balances, but non-source documents are not used to record transactions.
Where marks are usually lost
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