Journals & Source Documents | Answers


Match the Source Document

Match each transaction to the correct source document

Cash received from customer
➧ Receipt

Bought goods on credit
➧ Invoice

Returned goods to supplier
➧ Credit Note

Supplier sends request for credit note
➧ Debit Note

Paid electricity bill via cheque
➧ Cheque Counterfoil


Identify the Journal

Sold goods on credit
➧ Sales Journal

Paid wages in cash
➧ Cash Payments Journal

Bought a computer for cash
➧ Cash Payments Journal

Customer paid money owed
➧ Cash Receipt Journal

Business borrowed money from the bank
➧ General Journal | or Cash Receipt Journal, depending on system


General Journal Practice

Record the journal entries

Owner invested $5,000 cash into business.
➧ Cash | Dr $5,000
➧ Capital | Cr $5,000

Narration
Owner invested cash

Bought office chairs for $400 on credit.
➧ Office Furniture | Dr $400
➧ Accounts Payable | Cr $400

Narration
Bought chairs on credit

Paid $120 internet bill.
➧ Internet Expense | Dr $120
➧ Cash | Cr $120

Narration
Paid internet bill

Returned goods worth $80 to supplier.
➧ Accounts Payable | Dr $80
➧ Purchase Returns | Cr $80

Narration
Returned goods to supplier

Received $300 service revenue in cash.
➧ Cash | Dr $300
➧ Service Revenue | Cr $300

Narration
Received service revenue


Source Document Identification

Proof that the customer paid cash
➧ Receipt

Document sent to a customer when they return goods
➧ Credit Note

Document used to request payment
➧ Invoice

Proof of bank withdrawal
➧ Bank Statement | Cheque Counterfoil

Document from supplier for goods bought on credit
➧ Invoice


Mini Case Study

Identify the correct source document for each transaction.

$600 credit purchase
➧ Invoice

$100 goods returned
➧ Debit Note | Credit Note

$450 cash received
➧ Receipt

$200 cheque payment
➧ Cheque Counterfoil | Bank Statement

$300 credit sale
➧ Invoice

Correct Journal for Each

Transaction
$600 credit purchase
$100 goods returned
$450 cash received
$200 cheque payment
$300 credit sale

Journal
Purchases Journal
Purchase Returns Journal
Cash Receipt Journal
Cash Payment Journal
Sales Journal



General Journal Entries
Only for items requiring general journal - none here except returns, depending on system.

If returns are handled in GJ
➧ Accounts Payable | Dr $100
➧ Purchase Returns | Cr $100

Narration
Returned goods to supplier

If the institution uses a Returns Journal, then no general journal entries are required.


Quick Quiz

What is a journal?
➧ The book of original entry where transactions are recorded first.

Which journal records credit sales?
➧ Sales Journal.

What is a source document?
➧ Proof that a transaction occurred.

A receipt is used for credit sales.
➧ False | receipt is for cash received.

Name one example of a special journal.
➧ Sales Journal
➧ Purchases Journal
➧ Cash Receipts Journal
➧ Cash Payments Journal.

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