Top 35 source documents in accounting

Top 35 source documents? Top 35 Source documents: these are the first source of information from which the accounting books are prepared. A source document is the document in which data for a transaction is collected. This is the supporting document that is used when recording journal entries for transactions. It is a document that serves as the proof or source of the transaction.   Examples of Top 35 source documents are mentioned below: Purchased order: purchase orders are sent by the buyer to the vendor first, and they outline exactly what the order should contain and when it should arrive.Sales Invoice: this is made for account receivables. When an item is sold the seller will issue a document providing all the details of the sale.Purchase Invoice: this is made for account payables. What the seller enters as sales invoice, the buyer will enter it into their system as a purchase invoice.Debit note: this is evidence of reduce in purchases. In customer books, debit note reduces how much they owe to the seller. This support purchases return journalCredit note: this is evidence of reduce in sales. In supplier’s books, credit note reduces the amount owed by the customer. This support sales return journalCheque: A check (cheque) is a special bank note that represents the cash that is being paid by the customer.Revenue receipt: this is used to record the receipt of cash. A receipt is proof that the payment has been made, which is a good idea when paying cash.Cash register receipts: this is a business paper that lists the money coming in from customers.Bank advice: They are debit or credit bank advice. Bank credit advice is bank documents informing the business...
PAY-AS-YOU-EARN AND PAYSLIP

PAY-AS-YOU-EARN AND PAYSLIP

PAY-AS-YOU-EARN Pay-as-you-earn is a tax deducted from employee salary account and remitted on or before the 10th day of the month following the month in which salaries were paid. See relevant sections of the Personal Income Tax Act (PITA). (S.81 of Personal Income Tax Act Cap P8 LFN 2011). S. for details WHAT IS TAXABLE ENTITLEMENT (GROSS) OR GROSS EMOLUMENTS This is the total amount your employer pay to you as salary including all benefits arising from employment. It can be a inform of wages, salaries, allowances including benefits in kind, gratuities, superannuation and any other incomes derived solely by reason of employment. All manner of allowance you earn, provided it’s not a re-imbursement of expense to you, is taxable.  Finance Act 2020, defined “gross income” as income from all sources less non-taxable income, tax-exempt items listed in Paragraph (2) of the Sixth Schedule and all allowable business expenses and capital allowance (finance-act-2020). This is addition to the Act. For example, if you spend an amount for training outside your station and the money is refunded or reimburse through your payslip, it must be subjected to tax. All pay not intended to be taxed must not be passed through payroll. Pay like training cost, transport to attend training etc. TAX RELIEF (TAX ALLOWANCE) This is amounts that can be deducted from a person’s annual income to reduce the amount on which tax is paid. Or the amount of your income which is exempt from tax aside from other statutory deductions. Consolidated relief allowance of N200, 000 or 1 per cent of gross salary or whichever is higher plus 20...
Accountant is a value creator

Accountant is a value creator

Value creation is giving something valuable to receive something else that’s more valuable to you. As accountant, you are known to create value. You can create value in the following ways, but not limited. Establish any kind of business of your choiceEstablish accounting training schoolEstablish audit firmEstablish only tax preparation firmEstablish finance software tutoringEstablish collection agencyEstablish micro financing companyEstablish accounting or management consulting firmEstablish a cooperative society either in your office or outside your officeBecome a writer in the field of accountingBecome an accounting lecturer. etc It does not matter how you started. The only way to start is to start. As someone that has creative skill, any business you establish must...
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