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...

Bank Reconciliation Statement

What is Bank Reconciliation Bank Reconciliation Statement s the verification of all the entries in the bank statement with the bank book of the business. First, let understand what bank statement and cash book mean. A bank statement is the financial statement showing the details of all the transactions that the business had made through the bank account. While cash book is subsidiary book in which all cash transactions of receipts and payments are recorded. Definition of Terms Bank charges: This is money deducted from the entity account by the Bank to cover the cost of looking after the account. Unpresented cheque: Is a cheque draw but not yet been presented at the drawer’s bank. Uncleared cheque/ effect: Are bank cheque that passed through the clearing system but not yet cleared. It appears on the debit side of the cash book. Dividend: This is direct dividend receive into bank account. Standing order: This is an order given to the bank to pay a fixed sum of money at regular intervals from one’s bank account to a designated payee. e.g. paying rent, paying utility bill etc. Advantage of standing order It helps to save the repeated drawing cheque;They help to save spending money on stationery and postage andit is certain that payments are made on the due date. Disadvantages of standing order There are bank charges for such services. Dishonoured Cheque: This is cheque rejected by Bank.  Top 11 of what will give rise to dishonoured cheque When cheques are not signed or signed incorrectly (i.e. Irregular Signature)No date shown on the chequeWhen the cheque is mutilatedInsufficient funds in the...
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...
The Benefits of ICAN Certificate

The Benefits of ICAN Certificate

Sample ICAN Certificate The benefits of ICAN certificate to all area of our lives are enormous. ICAN, whose membership comprises of accountants, auditors, and accounting technicians, was established in 1965 by Act of Parliament No. 15 of 1st September 1965 (the ICAN Act) (icanig.org). Since then, it has improved the lives of its members and the nation in general. Being a member of ICAN make you become a professional in accountancy. Opportunities will be available to you when you become a full member of ICAN. A lot of information will be available to you to create wealth.  In the public sector, apart from increase morale and a sense of achievement, we look at two things that are the benefits of ICAN certificate. If you gain employment with an ICAN certificate or you have the certificate when already in the employment cadre of the Federal Government of Nigeria. Entry-level with ICAN certificate  This means the moment you are qualified as a chartered accountant before gaining employment in the public sector, you have a chance to start in Grade Level 10.  ICAN members with certificate will still be considered for employment in the public sector in line with the provision of the existing scheme of service even without them having a first degree. It is only ICAN and other related qualifications prescribed in the scheme of service considered for civil service appointment without a first degree.  The entry point for every ICAN member is GL 10. Advancement of ICAN qualified members  Advancement means moving an officer up from one rank to a higher one within his class or cadre. It is not the...
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