{{courseNav.course.mDynamicIntFields.lessonCount}} lessons During an accounting or tax audit, source documents back up the accounting journals and general ledger as an indisputable transaction trail. As mentioned in the previous lesson, the source document is the first document that exists relating to a transaction. flashcard set{{course.flashcardSetCoun > 1 ? ', 'Well, Kate,' Mrs. Brown says, 'Source documents are anything that you get during the course of a transaction. b) A sales invoice is used by sell, Provide one piece of documentation (not a procedure) that is relevant (to accounts receivable) that provides evidence for each of the following assertions. To facilitate referencing, each source document should have a unique identifier, usually a number or alphanumeric code. 'As long as it shows proof of a financial transaction, then yes, it is a source document,' Mrs. Brown says. The source document is the initial input to the accounting process and serves as objective evidence of the transaction, serving as part of the audit trail should the firm need to prove that a transaction occurred. Kate asks. Quotation: What is a quotation? A source document is any document you create or receive in the normal daily running of your business. This folder is supposed to be a personal area where users store their personal non-shared documents. They are … What is the Difference Between Blended Learning & Distance Learning? Did you know… We have over 220 college What is the Difference Between Phishing and Pharming? courses that prepare you to earn Compare and contrast a customer order and a purchase order. Sciences, Culinary Arts and Personal This morning she got a phone call from her accountant asking her to bring her the source documents she has for the month. A. Paid Beach Office Supply the balance due on Seaside's account. Source of funds meaning: Don’t be put off by the legal jargon - a 'source of funds check’ (SOF) is actually just a fancy way of asking you to send us some form of proof, to show that your hard earned cash comes from a legitimate source - be it from your salary, profits earned from your business, a loan from the bank and so on. The purpose of a document body is to organize and format information on a document correctly. Compare and contrast a picking ticket and a packing slip. Q. - Definition, Removal & Examples. This document gives the buyer’s accounting department an objective and reliable record of the purchase transaction. The more you do know about where a document is coming from, the easier it is to ascertain purpose, value and limitation. - Definition & Examples, Cash Receipts Journal: Definition & Examples, Using the Accounting Equation: Analyzing Business Transactions, Journal Entries and Trial Balance in Accounting, The Accounting Cycle: Definition, Steps & Examples, What is Bank Reconciliation? In other words, it’s a physical or electronic document that lists the details of a transaction and is used by the accounting department to journalize accounting information. Source documents are pieces of paper that prove that a transaction occurred. succeed. Source documents are used to record transactions because they are original and show an objective report of the economic activities of each transaction. 'Thank you, Kate. A journal entry is the recording of the date, accounts affected, and amount of a transaction into an accounting journal. Accountants need source documents so that they can accurately document the financial transactions that occurred during an accounting period. descriptions) the special terms and conditions of the transaction (i.e. Source documents are the physical basis upon which business transactions are recorded. The source document is a good internal control and provides evidence a transaction occurred. Each state has a sales representative who is paid on commissions. 2. Already registered? Services. https://www.answers.com/Q/What_is_the_purpose_of_source_documents The purpose of a source is the reason it was originally made. Purchased office supplies on account, $500. In the context of accounting, a "source document" is any form of paper record that is produced as a direct consequence of a financial transaction, and as a result, is evidence that the transaction has taken place.. Accounting source documents come in many different forms fior example: The first time the pen touches the paper to record observations in a trial, this generates “source documents”. just create an account. The creator of the source put in the time and effort to create it, and it was usually so that it could be used for something. Expert Answer 100% (1 rating) A source document is the original record that is maintained as evidence to recod a transaction in a company's accounting system. 14 chapters | 1. Home » Accounting Dictionary » What is a Source Document? Just as the name suggests, it is a document that serves as the proof or source of the transaction. d. deposit ticket, Bradster Corporation has the following preferred and common stock outstanding on December 31, 2009: 8% Preferred Stock ($10-par, cumulative, 40,000 shares authorized, 10,000 shares issued and outstan, 1. b. These are all original documents that were created from a transaction and the first component in an accounting system. | {{course.flashcardSetCount}} Will these work as source documents?'. So you see, without source documents, I couldn't even begin to do an accurate job for you. 'Well, now that I know what I am looking for, I can get you what you need!' 'Well, Mrs. Brown, I would be glad to, but I have no idea what source documents are,' Kate says. 'I was wondering, Mrs. Brown, can you explain to me why these are so important?' Where to Document. A. A source document is the original document that contains the details of a business transaction. That was pretty quick. They are different from secondary sources, accounts that retell, analyze, or interpret events, usually at a distance of time or place. In the past, source documents were always some sort of physical paper copy. It can be receipts from purchases and invoices from sales you made, whether they be sales on account or cash sales; invoices that show you made purchases on an account are also source documents; checks you wrote to pay bills; deposit slips that prove you put a certain amount of money in the bank; or copies of paid bills - they're all source documents. This can be a simple as creating an ancient ceramic pot to store grain. In other words, it’s a physical or electronic document that lists the details of a transaction and is used by the accounting department to journalize accounting information. These are source documents, right? It is a source of accounting document that sent to a customer by a … - Definition & Analysis, Biological and Biomedical The business and legal paper and autobiographies, etc. Start studying WHAT IS THE PURPOSE OF A SOURCE DOCUMENT?. 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