accounting cycle: step 1 - originating data
TRANSCRIPT
STEP 1Originating Data
Step 1: Originating Data Any time you originate data you must
keep The Objectivity Principle in mind. All accounting data must be supported by
a source document. Different people looking at the
evidence(source document) will arrive at the same values for the transaction.
Transactions will be based on fact, not on personal opinion or feeling.
Step 1: Originating Data Data is originated from source
documents. Source documents are business papers
from which information is obtained for a transaction. And provides proof the transaction occurred.
There are many types of source documents. They include;
Step 1: Originating Data Cheques Receipts Cash Register Tape Sales Invoice Purchase Invoice Bank Memo Memo
Cheques Cheques – Usually indicate that you
have paid cash for something. (Credit Cash)
Receipts Receipts will usually indicate that you
have received cash or something. (Debit Cash)
Cash Register Tape Usually indicate that you had some type
of sale (Debit Cash, Credit Sales)
Sales InvoiceAlso known as a bill. Usually means that you have sold something on account (Debit A/R, Credit Sales)
Purchase InvoiceUsually means that you have bought something and put it on account. (Credit Accounts Payable)
Bank Memo Bank did something that will affect your
account. (debit/credit cash)
Memo A note prepared by the business
outlining important transaction or financial information.
Source Documents All source documents will include the
following criteria. Date Amounts Reade (Debit or Credit) Document Number
Assignments Syme Textbook
Page 51 #3 Page 52 #4 Page 71 #6 Page 176 #3 Analyzing a Source Document Identify the Source Documents Summary of Source Documents