SOURCE DOCUMENTS
Junior Secondary School
Business Studies JSS 1(Basic 7)
Second Term Lesson Notes
Subject :
Business Studies
Term :
SECOND TERM
Week:
Week 10
Class :
JSS 1
Topic :
SOURCE DOCUMENTS
Previous lesson :
The pupils have previous knowledge of
that was taught as a topic during the last lesson.
Behavioural objectives :
At the end of the lesson, the pupils should be able to
- Say the Meaning of Source Document
- Write out Importance of Source Documents
- Mention the Types of Source Documents
Instructional Materials :
- Wall charts
- Pictures
- Related Online Video
- Flash Cards
Methods of Teaching :
- Class Discussion
- Group Discussion
- Asking Questions
- Explanation
- Role Modelling
- Role Delegation
Reference Materials :
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
- 9 Year Basic Education Curriculum
- Workbooks
Content :
Meaning of Source Document
Source documents may be defined as original documents on which monetary transactions are recorded, which provide necessary information for the preparation of books of original entry. It can also be defined as original documents on which information is recorded about business transactions.
Transactions are the major feature of any business. The business transactions take place when goods and services are transferred from one person to another. There are two types of transaction namely cash and credit transaction. Cash transaction means that money is paid immediately the transaction occurs. Credit transaction means that payment for what is bought or sold is made at a later date.
Importance of Source Documents
The following are the importance of source documents:
- To originate data for accounting records.
- They act as working evidence or as a proof of occurrence of such transactions.
- They enable various books of accounts to be opened.
- They serve as a source of information.
Types of Source Documents
The major types of source documents include the following:
(a) Invoice
This document is usually issued by the seller to the buyer immediately goods are dispatch or services rendered on credit. It shows the date of sale, description of goods bought or sold, quantity, unit price, total cost.
(b) Receipt
This document serves as an evidence of payment for goods bought or sold and services rendered. Receipts are given or received whenever cash is paid or collected for goods bought or sold or services rendered. It shows the following particulars:
(i) The reason for payment
(ii) The amount of money received
(iii) The person who made the payment and to whom the payment was made to.
(iv) The date of payment
(c) Cheque
A cheque is defined as a written order or instruction made upon a bank to pay a specific sum of money to a named person at a specific date. A cheque is a source document used as a means of receipts and payments instead of the physical cash.
Parties to a Cheque
There are three parties to a cheque namely – the drawer, the drawee and the payee
- The drawer is the owner of the account who issues out or draws the cheque.
- The drawee is the bank to which instruction is given to pay.
- The payee is the person to whom the money will be paid.
(d) Debit Note
This is sent by the seller to the buyer when there is an undercharge in the original invoice. A debit note can also be sent when there is an omission or return of goods.
(e) Credit Note
This is normally printed in red to distinguish it from an invoice. It is used when an invoice is overcharged, that is when the buyer is wrongly overcharged or goods are returned by the buyer. It is also called a credit memo.
(f) Petty Cash Voucher
This is a written authorization to pay small amounts in cash. Usually the Petty cashier fills out the voucher and ensures that the person requesting the cash signs it. The petty cashier then disburses the money and files the voucher in the petty cash container.
(g) Cash Register Tape
A cash register tape is a machine for quick and accurate recording. This helps when recording volume of transaction. The machine automatically prints receipts on the tape for the customers each time a sale is made.
Presentation
The topic is presented step by step
Step 1:
The class teacher revises the previous topics
Step 2.
He introduces the new topic
Step 3:
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
EVALUATION
- Explain the types of transaction
- State three importance of source document.
- Explain the term invoice.
- Differentiate between Credit note and Debit note.
- Differentiate between Receipt and Invoice.
Conclusion
The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.
