DOCUMENTS OF TRADE - CHEQUES, RECEIPTS, STATEMENT OF ACCOUNTS

​This is a document used to pay for something you bought.

​Business person usually used cheque because it is convenient as they don't have to take out thousands or millions of cash to pay to their suppliers.

​Today, businessman still use cheques depsite the availability of online transfers or online banking.

​This is because, cheque can serves as proof of their payments.

​A sample and detailed explanation of cheques - please refer to the link given in Google Classroom.

​This is something that you have seen alot probably every time you go to the shop with your parents.

​You will also be given this receipt when you are in school, when you pay for your school fee or school fund. Your class teacher will give you a receipt in return as a proof of your payment.

​You normally called this as 'resit' in Malay.

​Usually a receipts is given to the buyer or whoever pays for the amount of something (like school fees/funds).

​So this is a proof that you have paid for it and the school has received it.

​In business, it means, it proofs the buyer already pay for the goods bought and the seller had received the money from the buyer.

Do not confuse this with the Bank Statements. They are totally different.

Bank Statements are the statements that the bank give you at the end of the month showing you how much money you have deposit in the account and how much money you have withdraw (take out) from your account in the bank.

This STATEMENT OF ACCOUNTS is different.

This is a statement also given monthly BUT NOT BY THE BANK, it is given by the SELLER TO THE BUYER to show the transactions that happened in that month.​

In a Statement of Account​s, the seller will show the buyer the summary of what the buyer bought, debit note received (this will be recorded as DEBIT - meaning adding to his debt) and what the buyer paid, discount given, credit note received (this will be recorded as CREDIT - meaning reducing his debt).

​You will also come across this in Accounting lesson, for those of you who also take Accounting.

​To know more about this please click on the link provided on the Google Classroom.