Placeholder topic
Progress: 0/7 checkpoints complete (0%).
0/400
0/400
0/400
0/400
0/400
0/400
0/400
0 due | 0 overdue
No due spaced reviews.
No recommendations right now.
No baseline score yet.
No topic mastery records yet.
No adaptive path suggestions yet.
Move from lesson study to exam practice in Accounting.
No direct subject mapping found yet. Browse past papers to pick province and subject.
Imagine Sipho runs a busy spaza shop in Khayelitsha. Every day, he buys stock from wholesalers, sells to customers, and pays for electricity (sometimes more than once a day during load-shedding!). Each transaction leaves a paper trail: till slips, cash receipts, invoices, and EFT confirmations. These are called source documents. They’re the backbone of trustworthy accounting. For example, when Sipho buys cold drinks from Ahmed’s Wholesalers, he gets an invoice and a delivery note. If he pays cash, he receives a cash register slip. These documents prove what happened and when. Without them, Sipho could forget to record a sale or double-count an expense. In accounting, every entry in the books must be backed by a source document. This is not just good practice—it’s required by law and expected in the NSC exam. Many learners think any piece of paper is a source document, but only those that record a business transaction qualify. Always check for the transaction details: date, amount, parties involved, and a signature or stamp.
Think about the last time you bought airtime at a tuckshop in Polokwane. You probably got a till slip. In accounting, there are several types of source documents: cash register slips (for cash sales), receipts (for money received), invoices (for credit sales), credit notes (for returns), cheque counterfoils (for payments by cheque), and EFT confirmations (for electronic payments). For example, when Lerato sells cold drinks on credit to a local soccer team, she issues an invoice. If the team returns some drinks, she gives them a credit note. Each document serves a specific purpose and is used to record transactions in the correct journal. A common misconception is that a receipt and an invoice are the same. In fact, a receipt proves payment, while an invoice requests payment. In the NSC exam, you’ll be asked to match documents to journals, so know the difference!
When Ahmed sells goods to Sipho, he fills out an invoice in duplicate. The original goes to Sipho, the buyer; the duplicate stays with Ahmed, the seller. This system ensures both parties have proof of the transaction. In South Africa, businesses must keep duplicates for at least five years for SARS (the tax authority). For example, when Thandi pays for stock by EFT, she gets an EFT proof (original), and the business keeps a digital copy (duplicate). Many learners mix up who keeps which copy. Remember: the person who issues the document keeps the duplicate; the person who receives the goods or pays keeps the original. This detail is often tested in Paper 1, Section B. If you get it wrong, you lose easy marks.
Step 1: Read the source document. Sipho’s spaza shop issues a till slip for R250 cash received on 2 June 2024. The till slip shows the date, amount, and item sold. Step 2: Identify the document type. A till slip is proof of a cash sale and is typically given to the customer as the original. Step 3: Decide on the correct journal. Cash sales are always recorded in the Cash Receipts Journal (CRJ) because they increase the business’s cash on hand. Step 4: Record the entry. Date: 2 June 2024; Details: Sales; Amount: R250. Step 5: Sanity check. The transaction increases cash on hand, which matches the fact that money was received. Final answer: Record R250 in the CRJ under sales for 2 June 2024. This matches the cash received and the supporting document.
Step 1: Read the source document. Thandi buys stock on credit from Ahmed’s Wholesalers. She receives an invoice for R1 000 dated 5 June 2024. The invoice lists the goods, price, and payment terms. Step 2: Identify the document type. An invoice for a purchase is proof of a credit purchase, not a cash transaction. Step 3: Decide on the correct journal. Credit purchases are recorded in the Creditors Journal (CJ) because they increase the amount owed to suppliers. Step 4: Record the entry. Date: 5 June 2024; Details: Ahmed’s Wholesalers; Amount: R1 000. Step 5: Sanity check. No cash moved yet; only the liability increased, which matches the fact that payment will happen later. Final answer: Record R1 000 in the CJ under Ahmed’s Wholesalers for 5 June 2024. This reflects the correct increase in creditors.
Question: Sipho pays R300 for electricity by EFT on 7 June 2024. What is the source document and which journal should be used? Let’s think: The proof is the EFT payment confirmation, which shows the date, amount, and reference. This is a payment, so it belongs in the Cash Payments Journal (CPJ), since money is leaving the business. Worked response: Record R300 in the CPJ on 7 June 2024, details: Electricity. This matches the outflow of cash and the supporting document. Now you try: Sipho pays R450 for airtime by EFT on 8 June 2024. Which journal should this be recorded in? Answer: CPJ. Remember, all payments, whether by cash or EFT, go in the CPJ.
Question: Lerato sells snacks worth R600 on credit to Mthatha High School on 10 June 2024. What document does she issue and where is it recorded? Think: Credit sale means an invoice is issued, which includes the date, amount, and customer details. This goes in the Debtors Journal (DJ), because the school owes money. Worked response: Record R600 in the DJ on 10 June 2024, details: Mthatha High School. This reflects the increase in debtors. Now you try: Lerato sells R800 worth of drinks on credit to Polokwane FC. Which journal should this be recorded in? Answer: DJ. Credit sales always go in the Debtors Journal.
1. List three types of source documents you might find in a Durban spaza shop, such as till slips, cash receipts, and invoices. 2. State who keeps the duplicate of an invoice after a credit sale. 3. Name the journal where cash received from a customer is recorded, and explain why it is the correct journal.
1. A customer pays R350 cash for groceries. Which source document is issued, and in which journal is this transaction recorded? 2. Thandi returns goods to a supplier and receives a credit note. Which journal records this transaction, and what does it represent? 3. Ahmed pays R200 for taxi fare by cash. What is the source document, and which journal should be used to record this payment?
1. Analyse why it’s important for a business to keep duplicates of source documents for SARS and audits. 2. A learner records a credit sale in the CRJ instead of the DJ. Explain the error and show how to correct it. 3. Predict the impact on financial statements if source documents are lost or incomplete, and suggest what the business should do to prevent this.
Answer: Till slip
A till slip is issued for cash sales. An invoice is for credit sales, a credit note for returns, and a cheque counterfoil for cheque payments.
Answer: The seller
The seller keeps the duplicate for their records; the buyer gets the original. Many confuse this and lose marks.
Answer: Cash Payments Journal
EFT payments are cash outflows, so they go in the CPJ. The CRJ is for cash received, not paid.
Answer: Goods are returned
Credit notes are issued when goods are returned to the seller, either by a customer or to a supplier. This document reduces the amount owed and is not used for cash sales, cheque receipts, or invoice payments. Learners often confuse credit notes with receipts or invoices, but only returns trigger a credit note.
Answer: Invoice
An invoice is used to record a credit purchase because it lists the goods bought and the amount owed. Receipts are for money received, till slips for cash sales, and EFT proofs for electronic payments. Only an invoice proves a credit purchase.
Answer: Date and amount
Let’s say Sipho receives R1 200 cash from a customer for groceries. He issues a cash receipt. This transaction must be recorded in the Cash Receipts Journal (CRJ). If he pays R500 for airtime by EFT, the proof of payment is recorded in the Cash Payments Journal (CPJ). If he sells on credit, the invoice details go into the Debtors Journal (DJ). The type of source document tells you which journal to use. A common error is recording a credit sale in the CRJ just because money is involved. Only cash received goes in the CRJ; credit sales go in the DJ. In the NSC exam, always check the document type before deciding on the journal.
A valid source document must include the date of the transaction and the amount involved. These details ensure the transaction can be traced and verified. Without them, the document is not reliable for accounting or audit purposes.
Answer: They serve as legal proof of transactions and are required for audits and SARS.
Original source documents are the primary evidence that a transaction took place. They are needed for legal reasons, tax audits by SARS, and to resolve disputes. Without originals, a business cannot prove its financial records are accurate.
Answer: Cash Receipts Journal (CRJ)
A cash receipt for money received from a customer is always recorded in the CRJ. This journal tracks all cash inflows. Recording it elsewhere would misstate the business's cash position.
Answer: R700
Add all till slips: 200 + 350 + 150 = 700. Watch for careless addition errors.
Answer: Cash is overstated and debtors are understated
Recording a credit sale in the CRJ incorrectly increases cash and fails to record the amount owed by debtors. This results in both an overstatement of cash and an understatement of debtors, which can mislead users of the financial statements.
Answer: They show payment details and are traceable
EFT proofs are accepted because they provide clear evidence of payment, including date, amount, and recipient. They are generated by banks, making them reliable and traceable. This helps prevent fraud and supports accurate record-keeping.