📓 IGCSE ACCOUNTING
WORKBOOK
- BUSINESS DOCUMENT 🖊️
Student Name:
Date :
Class:
,The Seven Business Documents Used in Accounting are:
1. Quotation
2. Purchase Order
3. Delivery Note
4. Invoice
5. Credit Note
6. Receipt
7. Statement of Account
"In a series of financial transactions, what is the correct order of issuance of the
following business documents: Invoice, Cash Memo, Receipt, Pay-in Slip, Check, Debit
Note, Credit Note, and Voucher, and what is the purpose of each document in the
transaction process?"
Example:
"Company XYZ has sold goods worth $5,000 to a customer on credit. After the sale, the
customer returns goods worth $1,000. The customer later makes a payment of $4,000.
Following these transactions, what is the correct sequence of business documents that
should be issued, and what role does each document play in the process?".
Summary of Documents in Order:
1. Invoice – Issued at the time of sale ($5,000).
2. Debit Note – Issued when goods are returned ($1,000 reduction).
3. Receipt – Issued when payment is made ($4,000 received).
4. Credit Note – Issued if any further balance adjustments are needed (depending
on the return).
5. Voucher – Internal document for accounting purposes
, Transaction Details Business documents
○ Invoice: The first document issued will be
an Invoice, which serves as a formal
1. Sale of Goods Worth $5,000 request for payment. It details the sale
(On Credit) amount, terms of payment, and description
of goods or services sold. In this case, the
invoice would show a $5,000 sale.
2. Customer Returns Goods ○ Debit Note: Since the customer returned
Worth $1,000 goods worth $1,000, a Debit Note should be
issued. This document adjusts the original
invoice amount, reflecting the returned
goods. The Debit Note increases the amount
payable by the customer (if there's a return
of goods) or decreases the credit balance of
the seller.
3. Upon the customer’s ○ Receipt should be issued. This document
payment of $4,000. acknowledges that the payment has been
received and details the amount paid
against the outstanding balance.
4. Customer Makes a Payment ○ Credit Note: If necessary (depending on
of Adjusting the Remaining whether the return has fully adjusted the
Balance original amount), a Credit Note might be
issued. The Credit Note confirms that the
customer's balance has been adjusted
based on the returned goods, and it serves
as evidence of the reduction in debt.
WORKBOOK
- BUSINESS DOCUMENT 🖊️
Student Name:
Date :
Class:
,The Seven Business Documents Used in Accounting are:
1. Quotation
2. Purchase Order
3. Delivery Note
4. Invoice
5. Credit Note
6. Receipt
7. Statement of Account
"In a series of financial transactions, what is the correct order of issuance of the
following business documents: Invoice, Cash Memo, Receipt, Pay-in Slip, Check, Debit
Note, Credit Note, and Voucher, and what is the purpose of each document in the
transaction process?"
Example:
"Company XYZ has sold goods worth $5,000 to a customer on credit. After the sale, the
customer returns goods worth $1,000. The customer later makes a payment of $4,000.
Following these transactions, what is the correct sequence of business documents that
should be issued, and what role does each document play in the process?".
Summary of Documents in Order:
1. Invoice – Issued at the time of sale ($5,000).
2. Debit Note – Issued when goods are returned ($1,000 reduction).
3. Receipt – Issued when payment is made ($4,000 received).
4. Credit Note – Issued if any further balance adjustments are needed (depending
on the return).
5. Voucher – Internal document for accounting purposes
, Transaction Details Business documents
○ Invoice: The first document issued will be
an Invoice, which serves as a formal
1. Sale of Goods Worth $5,000 request for payment. It details the sale
(On Credit) amount, terms of payment, and description
of goods or services sold. In this case, the
invoice would show a $5,000 sale.
2. Customer Returns Goods ○ Debit Note: Since the customer returned
Worth $1,000 goods worth $1,000, a Debit Note should be
issued. This document adjusts the original
invoice amount, reflecting the returned
goods. The Debit Note increases the amount
payable by the customer (if there's a return
of goods) or decreases the credit balance of
the seller.
3. Upon the customer’s ○ Receipt should be issued. This document
payment of $4,000. acknowledges that the payment has been
received and details the amount paid
against the outstanding balance.
4. Customer Makes a Payment ○ Credit Note: If necessary (depending on
of Adjusting the Remaining whether the return has fully adjusted the
Balance original amount), a Credit Note might be
issued. The Credit Note confirms that the
customer's balance has been adjusted
based on the returned goods, and it serves
as evidence of the reduction in debt.
