• 20 Marks

FA – Nov 2024 – L1 – Q2 – Sales Cycle Documents

List and discuss six sales cycle documents: their facilitation of accounting and two impacting double entry.

a. List SIX documents used in the sales cycle of a business.

b. Discuss how each of these documents facilitates the accounting process and ensure effective management of sales transactions.

c. State TWO of the documents you listed in (a) that impact double entry.

(a) Six documents: Sales order, Delivery note, Invoice, Credit note, Statement of account, Receipt (1 mark each, total 6).

(b)

  • Sales order: Initiates transaction, aids recording.
  • Delivery note: Confirms dispatch, supports inventory control
  • Invoice: Records sale value, basis for debtor ledger.
  • Credit note: Adjusts overcharges, ensures accuracy.
  • Statement of account: Summarizes debts, aids reconciliation.
  • Receipt: Confirms payment, updates cash book.                                                                                                                                                                                                                                                                                                                                      (c)  Invoice and Receipt
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