SESSION 39 – APPENDIX DATA SOURCES AND RECORDS OVERVIEW Objective To illustrate data sources and records in a typical accounting system SALES Receipts TANGIBLE NONCURRENT ASSETS Additions Disposals CASH Payments Despatched PURCHASES/ EXPENSES INVENTORY Received 3901 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS SALES Documentation Received from customer (orally or in writing) Book of prime entry Double entry (in general ledger) Other records CUSTOMER ORDER Prime entry Double entry On standard forms: Other customer details product codes product quantities (+/- prices) SALES ORDER product quantities delivery details GOODS DESPATCH NOTE product quantities prices, VAT etc SALES INVOICE INVENTORY RECORDS (eg "bin" cards) SALES DAY BOOK Dr Receivables ledger control a/c Cr Sales or vice versa MEMO RECEIVABLES LEDGER Transactions in period - sales invoices - cash receipts Balance receivable 3902 CUSTOMER STATEMENT EXTRACTION SESSION 39 – APPENDIX DATA SOURCES AND RECORDS PURCHASES/EXPENSES Documentation Book of prime entry Double entry (in general ledger) Other records On standard forms: Request for expense to be incurred PURCHASE REQUISITION Prime entry Double entry Order placed with supplier - product codes - quantify +/- price Other PURCHASE ORDER ("PO") product codes quantities GOODS RECEIVED/ (SERVICES RENDERED) product quantities prices, VAT etc PURCHASE/ EXPENSE INVOICE INVENTORY RECORDS PURCHASE DAY BOOK Dr Purchases a/c Dr Telephone a/c Dr Rent a/c , etc Cr Payables ledger control a/c or vice versa Received from supplier SUPPLIER'S STATEMENT RECONCILED MEMO PAYABLES LEDGER 3903 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS CASH 3.1 Receipts Customer's advice of payment being made Documentation REMITTANCE +/ADVICE CHEQUE OR CREDIT TRANSFER Book of prime entry CASH BOOK (Receipts) Double entry (in general ledger) Other records Dr Bank/Cash (control) a/c Cr Receivables ledger control a/c MEMO RECEIVABLES LEDGER 3.2 Payments Request for payment to be paid CHEQUE/ PAYMENT REQUISITION CHEQUE/ DIRECT DEBIT ETC CASH BOOK (Payments) Dr Payables ledger control a/c Cr Bank/cash (control) a/c MEMO PAYABLES LEDGER 3904 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS INVENTORY Other records Documentation 4.1 Goods received Supplier's despatch note accompanying goods On standard form: goods (products) quantity +/- quality ADVICE/ DELIVERY NOTE GOODS RECEIVED NOTE ("GRN") + 4.2 Goods despatched On standard form: delivery details goods quantity INVENTORY RECORDS GOODS DESPATCH NOTE 3905 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS TANGIBLE NON-CURRENT ASSETS 5.1 Additions On standard form request to acquire asset Documentation Book of prime entry Double entry (in general ledger) Other records CAPITAL EXPENDITURE REQUISITION PURCHASE ORDER (PO) Received from supplier PURCHASE INVOICE See PURCHASES/EXPENSES ASSET REGISTER 5.2 Disposals Proceeds (if any) Authority to dispose/ scrap asset 3906 CHEQUE ??? CASH BOOK (Receipts) Dr Bank/cash (control) a/c Cr Disposals a/c JOURNAL Dr Disposals a/c (NBV) Dr Accumulated depreciation a/c Cr Asset a/c (cost) SESSION 39 – APPENDIX DATA SOURCES AND RECORDS SUMMARY 6.1 Typical manual system Credit sales Books of prime entry SDB NOT DOUBLE ENTRY Transactions Cash receipts Cash payments Cash book Credit purchases PDB General ledger a/cs Revenue a/c Receivables ledger control a/c Cash and other general ledger a/c Payables ledger control a/c Purchases a/c Memorandum Memorandum Individual customers' accounts: detail only Individual suppliers' accounts: detail only Trial balance (check for errors) Journals Revised G/L a/cs The journal (book of prime entry) Income statement Balance sheet 3907 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS 3908 ... Supplier's despatch note accompanying goods On standard form: goods (products) quantity +/- quality ADVICE/ DELIVERY NOTE GOODS RECEIVED NOTE ("GRN") + 4.2 Goods despatched On standard form: delivery... EXTRACTION SESSION 39 – APPENDIX DATA SOURCES AND RECORDS PURCHASES/EXPENSES Documentation Book of prime entry Double entry (in general ledger) Other records On standard forms: Request for expense... quantity INVENTORY RECORDS GOODS DESPATCH NOTE 3905 SESSION 39 – APPENDIX DATA SOURCES AND RECORDS TANGIBLE NON-CURRENT ASSETS 5.1 Additions On standard form request to acquire asset Documentation