Analyze each business transaction and determine whether it should be classified as a cash transaction or credit transaction.
For each transaction, tick the relevant box to indicate whether it is a cash transaction or a credit transaction.
| TRANSACTION | CASH | CREDIT | SELECT TYPE |
|---|---|---|---|
a Receipt of goods costing $140.59 from a supplier together with an invoice for that amount. | |||
b Payment of $278.50 by cheque for a purchase at the till. | |||
c Receipt of a deposit of $15.00 for goods. | |||
d Sending of an invoice for $135.00 to the payer of the deposit for the remaining value of the goods. | |||
e Sale of goods for $14.83, payment received by credit card. |
Identify the documents used in purchasing processes
Fill in the document names for each purchasing stage
| Item | Purchasing Stage | Document Name |
|---|---|---|
| (a) | Request to supplier to supply goods. | |
| (b) | Notification by supplier of the amount due to be paid for the goods. | |
| (c) | Notification by purchaser to the supplier of the amount enclosed as payment. | |
| (d) | Cancellation of an amount due to a supplier. | |
| (e) | Record of a cash sale given to a customer. |
Complete the sentences to demonstrate your understanding of business documentation
Complete the following sentences about debit and credit notes. Each blank is worth 1 mark. (6 marks total)
A credit note is a document produced by the and sent to which cancels all part of
A debit note, on the other hand, is raised by the and sent to the requesting a
Not all businesses employ a formal debit note for this purpose; many relay on a letter or telephone call only.
A document issued by the seller to reduce the amount owed by the buyer, typically due to returns, allowances, or billing errors.
A document issued by the buyer to request a reduction in the amount they owe, often due to damaged goods or billing discrepancies.