Source documents contd. Credit Note

SOURCE DOCUMENTS Contd.

4. Credit Note: This is a document prepared by the seller for the goods returned by the buyer. It is also used to adjust errrors of overcharge made in an invoice. It shows the details of items, amount and reason for the return.

5. Cash register tape: A cash register is a summary of all the cash received. These entries are made from the receipt book.



6. Cheque: This is a written order from an account holder to a bank to pay a specified sum of money to the person whose name is on it. There are two types of cheque:

a. Crossed cheque: This cheque has parallel lines drawn with or without any words to indicate that the cheque can only be payable through a collecting banker and not directly at the counter of the bank.

b. Open cheque: This has no lines across the face and is payable at the counter of the drawee’s bank when he or she presents the cheque.

7. Receipt: This is a document issues to the buyer by the seller that a sum of money has been paid in respect of goods bought. It is a legal proof of payment.