Business Studies - Junior Secondary 1 - Source documents

TERM: 3^RD TERM

WEEK ONE

Class: Junior Secondary School 1

Age: 12 years

Duration: 40 minutes of 5 periods each

Date:

Subject: BUSINESS STUDIES

Topic: SOURCE DOCUMENTS

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

I.) Explain the Meaning of Source Documents

II.) Mention the Uses of Source Documents

III.) Types of Documents

IV.) Explain the Content of Source Document

V.) Differentiate between Cash and Credit Transaction

VI.) Extract Information from Source Documents for Book Keeping Purposes

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

SOURCE DOCUMENTS

Source documents are original records that provide evidence of financial transactions. These documents initiate or support a transaction and serve as the basis for recording it in the accounting system. They are crucial for maintaining accurate and verifiable financial records.

Uses of Source Documents

Source documents serve several purposes in accounting and bookkeeping:

1. Evidence of Transactions: They provide proof that a transaction occurred and support the accuracy and authenticity of financial records.
2. Recording Transactions: Source documents are used to record financial transactions in journals and ledgers.
3. Verification: They help verify the accuracy of entries in accounting records and ensure compliance with financial reporting standards.
4. Audit Trail: Source documents create an audit trail that auditors can follow to trace the flow of transactions from initiation to recording.

Types of Source Documents

Common types of source documents include:

1. Sales Invoice: Issued by a seller to a buyer, detailing goods sold or services rendered, prices, terms of sale, and payment due date.
2. Purchase Invoice: Received by a buyer from a seller, specifying items purchased, quantities, prices, terms, and payment due date.
3. Receipts: Acknowledge payment received from customers or issued for expenses paid, providing details of the amount, date, and purpose of payment.
4. Bank Statements: Summarize transactions, deposits, withdrawals, and balances in bank accounts over a period.
5. Payroll Records: Document wages, salaries, deductions, and taxes withheld for employees.

Content of Source Documents

Source documents typically include:

- Date of Transaction: When the transaction occurred.

- Description: Details of goods purchased, services rendered, or the nature of the transaction.

- Amount: Monetary value of the transaction.

- Names and Identities: Identification of the parties involved (e.g., buyer, seller, employee).

- Terms of Transaction: Payment terms, due dates, discounts, and conditions of sale or purchase.

Difference between Cash and Credit Transactions

Extracting Information from Source Documents for Bookkeeping

To extract information from source documents for bookkeeping purposes:

I.) Review each source document to ensure it is complete and accurate.

II.) Enter relevant details into accounting journals or directly into accounting software.

III.) Classify transactions based on accounts affected (e.g., sales, purchases, expenses).

IV.) Record transactions using double-entry bookkeeping principles (debit and credit entries).

V.) Ensure all entries are supported by corresponding source documents for audit trail and verification.

   EVALUATION: 1. Explain the Meaning of Source Documents

2. Mention 4 Uses of Source Documents
3. Mention 4 types of Documents
4. Differentiate between Cash and Credit Transaction

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively