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their account. This often occurs due to return of goods to the supplier and it has a negative impact
on the accounting balance of the seller.
Debit notes - An invoice is made for each purchase or supply of goods or services. If for various
reasons the supply falls short due to certain reasons, or extra goods are being delivered to the
purchaser, then the seller will issue a debit note. This debit note with note the upward revision of
prices in an already issued invoice and will inform the purchase of any future liability that they will
have to pay. Debit notes are made in cases where a tax invoice that has been previously issued, in
which the taxable value of the goods from the invoices has changed after the date of issue. (16)
Bank statements - A bank statement is a summary of financial transactions that occurred at a
certain institution during a specific time period. For example, a typical bank statement may show
your deposits and withdrawals for a certain month. Bank statements allow you to check for errors,
watch for suspicious activity, and track your spending. You may also need to submit a bank
statement when you apply for a loan or mortgage.
Books of original entry:
Books of original entry is nothing but an accounting book or journal where all transactions are
initially recorded. All business transactions, their details and descriptions are first recorded in the
book of original entry.
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