XSIQ
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Accounting - Source documents

Source documents

Invoice

Source documents are usually linked to control accounts. [1] Two important
documents for students to understand are the invoice and the credit note.
[2]

This document is an invoice delivered by the seller to the buyer along
with the goods as evidence of the transaction. The invoice duplicate is
used by the seller (Alex) to record that this has happened in their credit
sales journal. The buyer (Stewart Retail Stores) uses the invoice to record
the transaction in their credit purchases journal.

For the party selling the goods the effect on the accounting equation is:

* a decrease in the asset stock (show dollar cost)

* an increase in the expense cost of goods sold which is recorded at the
cost price, followed by (show dollar cost)

* an increase in the asset debtors (show dollar selling)

* an increase in the revenue credit sales, which is recorded at the
selling price. (show dollar selling)

For the party buying the goods the effect on the accounting equation is:

* a increase in the asset stock

* an increase in the liability creditors

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Links:
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[1] http://alison.com/#
[2] http://alison.com/#