#1 – Direct Write-Off Method The source document's information should be recorded in the appropriate accounting journal as soon as possible after the transaction. Part of their audit involves reviewing the details of various transactions, which are originally shown in the source documents. Debtors allowance Cost of sales . Lyneez. Source documents here would probably be invoices. Copyright © 2020 Multiply Media, LLC. Also, the "bank" figure of $7,400 in the debtors control account would come from the total of the "debtors" column in the cash receipts journal: Similarly, the "total purchases" figure of $3,900 in the creditors control account could be traced back to the purchases journal (which shows purchases on credit). 1.) ADVERTISEMENTS: Some of the important types of Documents Used in Accounting are as follows: 1. On display is the Creditors Journal or Debtors Journal, the formats of which are identical. Deposit slip Record amounts deposited. After investigation the supplier, if in agreement with the claim, issues a credit note (C/N) to the customer. Gr. If entering a Creditors Journal, debiting the account will reduce the amount you owe the Supplier. The information obtained in the outgoing invoice/invoice issued is used to record the information in this journal as the source document. subsidiary journal used to record all transactions relating to goods sold on credit to customers or debtors. The value (selling price) of goods bought on credit by a debtor and which is now returned by the debtor. At a minimum, each source document should include the date, the amount, and a description of the transaction. As previously mentioned, we not only have the general ledger, but also two other ledgers:- The Debtors Ledger- The Creditors LedgerWe also learned that all individual debtor T-accounts go in the debtors ledger and all individual creditor T-accounts go in the creditors ledger.For example, here is a debtor's ledger with a number of individual debtor T-accounts:Now, as far as we know, debtor and creditor T-accounts only go in the debtor … After investigation the supplier, if in agreement with the claim, issues a credit note (C/N) to the customer. Source document.On the first line of the entry, write the source document number, R1, in the Doc. Bad debts expenses can be recorded using two methods viz. To Make Entries In The Creditors/Debtors Journal: Click on the Debtors or Creditor Journal icons or in the Books menu select Journal Adjustments, and then either Creditor Journals or Debtor Journals. Source documents are the physical basis upon which business transactions are recorded. The Journal entry required to write off the bad debt would show: Journal Entry Date Detail DR CR 1 July Bad debts a/c VAT a/c Sales Ledger Control Account Being the write off of a bed debt and claim for bad debt relief 600.00 105.00 705.00 This is the write off of a specific bad debt. Sheceena Joseph . Returns and allowances are recorded in the Creditors Allowances Journal (CAJ). Who is the longest reigning WWE Champion of all time? What are some samples of opening remarks for a Christmas party? General Ledger CREDITORS: The business OWES money to Creditors. If … This is the document we receive when purchasing goods on credit ; CPJ. Journals post single entry 3. A debtor's journal includes all transactions of sales on credit is recorded. 2 Sold goods for cash, R1 400. DEBTORS ALLOWANCES JOURNAL (GRADE 9) - YouTube One copy is sent to the debtor and the other is the source document for the entry in the business's Debtors Allowances Journal (DAJ) The DAJ is like a sales returns and overcharges journal. Original invoice. The source documents for the Sales journal are copies of all invoices given to the debtors. Debtors allowance journal: If a debtor returns goods or if the debtor has been overcharged on the invoice, the transaction is recorded in the Debtors allowance journal.

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