Receipts
What is a receipt?
A receipt is used as a record of a cash payment
A supplier issues a receipt to a customer when they pay for goods using physical cash
o Sometimes a receipt is issued when the customer pays using money in their bank
account
Other business documents may also be used to record these transactions
Example of a cash receipt
Cheques & cheque counterfoils
What is a cheque?
A cheque is a form of payment
It is written by the customer and given to the supplier
The supplier takes the cheques they receive to the bank and deposits them into the
business bank account
A cheque will contain:
o The details of the customer’s bank account
o The name of the supplier
o The amount to be paid
o The date on which the cheque is written
o The customer’s signature
The supplier will use the cheque as the business document for payments
o When the customer pays by cheque
What is a cheque counterfoil?
Cheques are attached to counterfoils in a chequebook
When a customer writes a cheque they also fill in some basic details on the counterfoil
o The name of the person who is being paid
o The amount to be paid
o The date that the cheque is written
The customer tears off the cheque and hands it to a supplier as payment
The customer keeps the cheque counterfoil
o This is used as a record of the payment
Example of a cheque with a counterfoil
Petty cash vouchers
What is a petty cash voucher?
A petty cash voucher is a document used when paying for small valued
purchases using petty cash
o This is usually done when a cheque would not be appropriate due to the low value
The customer pays the supplier using money from the petty cash till and records the
details on a voucher
The information from the vouchers is then transferred to the petty cash book
Paying-in slips
What is a paying-in slip?
A paying-in slip is a document used when depositing cash and/or cheques into a bank
account
The paying-in slip is kept by the business as a record of the deposit
It contains:
o The total amount from cash
o The total amount from cheques
o The total amount being deposited
o The date
Example of a paying-in slip
Bank statements
What is a bank statement?
A bank statement is issued regularly by a bank
It details all the bank transactions within a given period
o It shows money that goes in and out of the business' bank account
It shows the opening and closing balances for that period
A bank statement is used as a business document to identify and reconcile:
o Payments by credit transfer
o Payments by telephone transfer
o Payments by direct debit
o Payments by standing order
o Bank charges and interest
What is a direct debit?
A direct debit is used by a business to make recurring bank transfer payments to a
person or another business
The direct debit is set up by the person or business receiving the payments
o The business that makes the payment needs to agree to the terms
The payments can change
o The dates of the payments
o The amounts of the payments
What is a standing order?
A standing order is used by a business to make recurring bank transfer payments to a
person or another business
The standing order is set up by the business making the payments
The payments are fixed
o The dates are determined in advance
It could be the same day each month
o The amounts are the same for each payment
Example of bank statement
A summary of business documents for transactions
Business document Business document
Transaction
for the customer for the supplier
The customer buys goods on credit from the
Purchases invoice Sales invoice
supplier
The customer returns goods to the supplier and
Debit note issues Debit note received
requests a reduction in the balance
The supplier reduces the customer's balance after
Credit note received Credit note issued
receiving the returned goods
The customer pays a supplier using cash Receipt Receipt
The customer pays a supplier using petty cash Petty cash voucher Receipt
The customer pays a supplier using a cheque Cheque counterfoil Cheque
The customer pays the supplier by credit
transfer, telephone transfer, direct debit or Bank statement Bank statement
standing order
The supplier deposits the cash and cheques into
None Paying-in slip
their bank