• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Financial documents for purchase and sales.

Extracts from this document...


FINANCIAL DOCUMENTS FOR PURCHASE AND SALES Almost every business transaction is accompanied by a financial document. If you pay to enter a cinema you receive a ticket in return. If you buy a bar of chocolate you are given a receipt. If you pay for something by debit or credit card then you have to sign a printed slip or counterfoil, which confirms the transactions - because the supplier receives payment at the time the item, is purchased. You already know that an alternative to 'cash' transactions exists. Businesses buy and sell goods and services on credit. This means that payment is made at a later date. In this case, there are special business documents, which accompany each part of the transaction. At one time, all business documents were specially printed and completed either by hand or on a typewriter. Today, computers can print out financial documents automatically, as they are needed. The computer at the same time adjusts the company's accounts to show the transaction has taken place. ...read more.


At DigiTech Petra sends out delivery notes in the packages. The delivery note states the contents of the package (but not the price) so that the person receiving it can check that the correct items have been enclosed. At DigiTech all items received are checked against the delivery note immediately and the checker then signs the delivery note. The carrier who delivers the goods usually requires the delivery note to prove the package arrived intact. * GOODS RECEIVED NOTE (GRN) - a goods received note (usually referred to as a GRN) is issued by the person who has checked in an incoming package and a copy is sent to the accounts department. This is now a written record of the actual goods, which were delivered and their condition on arrival - sometimes it may differ from the delivery note. * INVOICES - an invoice is a bill for payment. It states the goods that have been sent and includes details of the price. * CREDIT NOTES - occasionally an item is returned for some reason or because the charge on an invoice is too high. ...read more.


* CHEQUES - DigiTech pay its suppliers by cheque and receive dozens of cheques a month in payment. All cheques received must be examined carefully as sometimes mistakes are made in filing out a cheque, which would be rejected by the bank. * RECEIPTS - very few businesses expect a receipt, as a cashed cheque is legally recognised as a receipt. ISSUED BY THE PURCHASER ISSUED BY THE SELLER ORDER FORM - describes order for goods or service with price DELIVERY NOTE - accompanies the goods and is signed by the customer as proof of delivery GOODS RECEIVED NOTE - is issued to record the actual items delivered SALES INVOICE - gives full details of goods, prices, discounts, VAT CREDIT NOTE - issued if goods are returned or to adjust any over-charge on the invoice Purchaser notifies seller if any shortages or damage STATEMENT OF ACCOUNT - summarises all transactions for both buyer and seller and shows the balance owing REMITTANCE ADVICE SLIP - summarises the account for return with payment CHEQUE - sent in settlement with remittance advice RECEIPT - mainly issued to private customers or to confirm cash payment has been received Unit 3 - Business Finance Leila Mohamed Page 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Comsat case

    The primary reason for that was the fact that his approach omits the existence and underestimates the importance of business and financial risk. Especially while considering the elements of his formula, it becomes apparent that there is an oversight of financial risk.

  2. The concept of financial statement

    fair view of the state of affairs and the profit and loss respectively of the company at the end of the financial year. Director's Report Directors are the most senior level of management. They are responsible for the daily working of the company and they answer to the shareholders.

  1. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    This can be found on your monthly statement. Alternatively, they request that you repay a percentage of the outstanding balance, for example, 3-5%. DECIDING WHICH CARD. In deciding which card is the best for you, you will need to assess how you use the card.

  2. What does Finance involve.

    Advantages of this option are if I issue shares out my company I can access a new capital to expand my business. My employees will feel more welcome because they will get more recognition and the company will get known more.

  1. Complete Report on Askari Commercial Bank

    The group is organized in four divisions' namely corporate banking, investment banking, international and treasury. i. Corporate And Investment Banking Divisions The corporate and investment baking divisions (CBD&IBD) are strongly positioned across priority markets with a distinct strategy for developing corporate business.

  2. Accountancy Notes

    suppliers to whom the business owes money * Cash Books - a cash book comprising cash account and bank account, and a petty cash book fro petty cash account (small purchases). These also subsidiary books * General (or nominal) Ledger - the remainder of the accounts : nominal accounts, e.g.

  1. Mr Carter has requested that I research the financial needs of potential and current ...

    Post education pre-families (23-30) Have greater financial needs than students. They will borrow and save. May have a mortgage, current account, credit cards, debit cards, loans, a bank overdraft, paying off student loans and a current account. Also, they could have an endowment, ISASs, shares/bonds and net saving.

  2. Financial Services

    Income Mrs. Reynolds Mr. Reynolds �1,800 monthly �33,000 �2,750=monthly Expenditure * Housing �6,000 a year/�500.00 a month * Insurance �60 a year * Power Gas �70 a quarter Electricity �80 a quarter * Council Tax �1,400 a year �116.000 a month * Petrol �35.00 * Insurance of car �400 a year * Repairs �250.00

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work