Unit 3 Journal Journey: Source Documents and Journal Entries

Vocabulary flashcards detailing accounting source documents, their transaction descriptions, and corresponding debit and credit journal entries.

Cash Sales Slip

A source document issued when goods or services are sold for cash. The journal entry debits Cash/Bank and credits Revenue.

POS Summary

A source document summarizing goods or services sold using debit or credit cards. The journal entry debits Cash/Bank and credits Revenue.

Sales Invoice

sold on account.

Accounts Receivable (A/R)

Revenue

Purchase Invoice

goods or services are bought on account.

an Expense or Asset account

Accounts Payable (A/P).

Cheque Copy [company issued]

A company-issued source document used for cash payments (expenses, owner withdrawals for personal use, paying an A/P, or buying assets). The journal entry debits Expense, Drawings, A/P, or an asset, and credits Cash/Bank.

Cash Receipts Summary

A payments on account (i.e., paid what they owed).

Cash/Bank

Accounts Receivable (A/R).

Bank Debit Advice

the bank takes money out of your account.

Interest Expense, Bank Charges, or Loan Payable,

Cash/Bank.

Bank Credit Advice

the bank puts money into your account.

Cash/Bank

Interest Earned or other Rev account.