Accounting Education

Every Accountants should know this significant documents;

1. Invoice: this document set out full details of goods sent by the suppliers to the buyer stating the quantity, price, discount given and terms of payment.

2. Debit note: this is a document sent by the seller to the buyer to correct an undercharge, overcharge or when goods are not charged on the invoice.

3. Credit note: this is a document sent by the customers for reduction in the amount owed by him. Due to to issues like damages or ordered.

4. Statement of account: this is the document sent by the seller to the buyer at a regular interval , usually showing credits and debits to the account and balance due.

5. Receipt: this is the document given by the seller to the customer as an evidence of payment for goods.

6. Petty cash voucher: this covers payment credited to the petty cash book.

3 simple steps in recording transactions;

1. Prepare double (two) accounts,
2. Identify the "giving account" and the "receiving account",
3. Then apply the Credit Giver and Debit Receiver principle.

NOTE: ALL CASH TRANSACTIONS MUST PASS THROUGH THE CASHBOOK.