FINANCIAL RECORDSUnit 6

WHAT WE WILL LEARN IN THIS TOPIC?

Recognize the different types of financial documents used in a business

Understand the purpose of each document Learn how to correctly complete the different

documents using examples

WHAT ARE FINANCIAL RECORDS

Financial records are types of documents used by individuals or businesses to record information and keep track of expenditures, transactions or business information.

WHAT IS THE PURPOSE OF FINANCIAL DOCUMENTS

To analyze business performance Manage financial transactions and keep

records for the future For legal purposes – compulsory

requirements under certain laws eg Taxation laws

To assist in lodging tax returns To conduct business transactions eg: buying

and selling goods

TYPES OF BUSINESS DOCUMENTS

Types

1. Requisition forms

2. Purchase orders

3. Tax invoice

4. Delivery note5. Adjustment note

6. Cheques

7. Receipt

THE PROCESS OF COMPLETING FINANCIAL DOCUMENTS IN A BUSINESS

Businesses use financial documents on a daily basis when conducting their business activities of buying and selling.

The process for completing a purchase from suppliers/ sellers is outlined in your textbook in figure 6.1 page 147.

Copy the diagram in your books.

THE PROCESS IS AS FOLLOWS

Complete requisition

order

Fill Purchase Order

Fill Tax invoice

Fill Delivery note

Fill adjustment

note

Complete Cheques

Send receipt

1. REQUISITION ORDER FORM

What is it used for? What type of information it contains How to interpret the information on it? How to complete it?

Refer to your textbook to answer those questions

Complete Activity 6.1