Identify business documents and their evidence
Use the document's issuer, date, parties and amounts to identify what evidence a business transaction provides.
Section 2.2 · Business documents
Cambridge IGCSE Accounting 0452 / (9–1) 0985, 2027–2029 Version 1. These lessons follow the 2027–2029 syllabus only; the separate 2026 syllabus update is not yet mapped. Written practice is self-checked, not an official Cambridge grade. Full timed-paper practice and human subject-teacher review remain pending.
Before you begin
- No previous accounting study is assumed. Keep the business, transaction and accounting period in view, and distinguish a resource, a claim and a performance result.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Why should a bookkeeper check the date and parties on an invoice?
What you will learn
- Recognise common documents used in accounting
- Identify the transaction detail a document supports
- Distinguish a document's evidence from the ledger entry
Read the source before recording
An invoice requests payment for goods or services supplied; a receipt records that payment was received. A credit note, normally issued by the seller, records a reduction to an amount previously invoiced, for example after goods are returned or an overcharge is corrected. A buyer may send a debit note to list a return or amount disputed and request the supplier's credit note.
A cheque counterfoil is the payer's retained record of a cheque; a paying-in slip lists cash or cheques deposited at the bank. A bank statement is the bank's record of account transactions. A supplier's statement of account summarises transactions and the balance it says is due.
A source document is evidence, not the whole accounting record
Documents help the bookkeeper identify, verify and classify a transaction. The document is then recorded in a suitable book of prime entry and posted to ledger accounts.
Compare related documents: an invoice, later credit note, customer receipt and bank statement can explain changes in one account. Check amounts, dates, references and whether the source is a duplicate before posting.
Pause and explain
Goods worth $90 are returned after a $500 invoice and the supplier issues a credit note. What balance remains due?
Worked example
A retailer receives an invoice for $480 of goods, then returns goods worth $60 and receives a credit note. What amount remains due before payment?
Show the worked solution
- The invoice establishes an amount due of $480.
- The credit note reduces the amount by $60.
- Balance due = 480 − 60 = $420.
Answer The retailer owes $420 before payment, assuming no other adjustments.
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Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
Match a bank statement, a paying-in slip and a receipt to the evidence each provides.
Give me a hint
Distinguish the bank's record, a deposit record and confirmation of payment received.
Compare my reasoning
- The bank statement lists transactions recorded by the bank.
- A paying-in slip records details of a deposit submitted to the bank.
- A receipt confirms that the business received payment from a payer.
A bank statement shows the bank's transaction record; a paying-in slip supports a deposit; a receipt confirms payment received.
Look for these in your work
- All three matched
- Issuer or role considered
- Evidence distinctions clear
A supplier statement shows $1,300 due. The business has an invoice for $1,000 and a later credit note for $120. Identify the amount that needs investigation before posting another payment.
Give me a hint
Reconcile the statement to the documents; do not assume the statement contains every detail.
Compare my reasoning
- The invoice less credit note gives $1,000 − $120 = $880 due.
- The supplier statement shows $1,300, a difference of $420.
- Check for missing invoices, unrecorded payments, timing differences or an error before paying.
The documents support $880 due, which is $420 below the statement. Investigate the difference with the supplier records before another payment.
Look for these in your work
- Document total correct
- Difference calculated
- Follow-up justified
A clerk finds two copies of the same $275 invoice with the same supplier, invoice number and date. Explain what should happen before the amount is posted.
Give me a hint
Use identifiers to check whether the copies represent one transaction or two distinct supplies.
Compare my reasoning
- Compare supplier, invoice number, date and goods details.
- The matching identifiers suggest the copies may be duplicates, not two purchases.
- Verify against the order and receipt records, then post the transaction once if it is valid.
Verify the invoice against the order and goods received, then record it once if genuine. The second copy is not evidence of a second purchase.
Look for these in your work
- Duplicate risk identified
- Independent source checked
- Single posting justified
Common mistakes
- Treating an invoice as proof that cash has already changed hands
- Recording a credit note as a second sale
- Ignoring whether the business issued or received a document
What can you explain now?
Which document normally records that a customer has paid?
Compare with the explanation
Receipt
A receipt is evidence that payment was received; an invoice requests payment.
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Make it stick
Why is a receipt different evidence from an invoice?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.