1. BUSINESS DOCUMENTS

2. Stages of Financial Recording Calculate Net Profit and Capital Employed Prepare Final Accounts and Balance Sheet Balance ledger accounts and extract a Trial Balance Post to General Ledger, Debtors Ledger, Creditors Ledger Sales book, sales returns book, purchases book, purchases returns book, cash book, general journal Letter of enquiry, quotations, orders, delivery documents, invoice, credit note, statement, cheque, receipt

3. Letter of Enquiry from the Buyer Quotation sent by Seller Order is placed by the Buyer Delivery Docket signed for Seller Invoice sent by the Seller Letter of Complaint by Buyer Credit note issued by Seller Statement sent by Seller Cheque paid by buyer and Receipt issued by Seller Business Documents Sequence

4. Letter of Enquiry Finding out information about the products and services available, prices of goods and delivery options Treatment of Letter of Enquiry BuyerSeller -Check name and address are correct -File a copy of the letter of enquiry -Check the name and address -Send a quotation -File the letter

5. Quotation It is sent based on the letter of enquiry giving information of the goods available, price and any discounts and delivery options Treatment of Quotation BuyerSeller -Compare all the quotations for the best deal -File the quotation -Check name and address are accurate -File a copy of the quotation sent

6. Order Based on the best quotation, the buyer places an Order with the seller to send the goods and the terms outlined in the Quotation Treatment of Order BuyerSeller -Check the name and address -File a copy of the Order placed -Check the name and address against the quotation -Check the stock levels and credit rating -File the Order

7. Delivery Docket This document provides proof that the goods were delivered and have them checked before signing the docket Treatment of Delivery Docket BuyerSeller -Check the name and address -Check that they are the correct goods ordered -File a the delivery docket -Check the name and address -Check the details according to the order -File a copy of the delivery docket

8. Invoice Sent by the Seller outlining the quantity, description and price of the goods and any discount which has been offered. Treatment of Invoice BuyerSeller -Check the name and address are correct -Check that they are the correct goods as per order -Check the calculations -File the invoice -Check the name and address -Check the details are correct -Check the calculations -File a copy

9. Letter of Complaint This is only sent if the goods ordered are incorrect or damaged and buyer is seeking a replacement or discount. Treatment of Letter of Complaint BuyerSeller -Check the name and address -Check the details are correct as per order and invoice -Identify the problem -File a copy -Check the name and address -Check the details as per order and invoice -Investigate the problem with the goods delivered -File the letter of complaint

10. Credit Note Offered by the seller to the buyer an alternative to cash so the buyer can order different goods at a reduced price. Treatment of Credit Note BuyerSeller -Check the name and address -Check the details with the letter of complaint -Check the calculations -File the credit note -Check the name and address -Check the details with the letter of complaint -File a copy of the credit note

11. Statement of Account The seller issues this to the buyer at the end of the month outlining the transactions that have taken place and the money owed. Treatment of Statement of Account BuyerSeller -Check the name and address -Check the calculations -File the statement -Check the name and address -Check the calculations -File a copy of the statement of account

12. Cheque Payment made by the buyer to the seller for goods purchased on the amount owing. Treatment of Cheque BuyerSeller -Complete the cheque correctly and counterfoil -Check the name and amount is correct -Check the details are correct on the cheque

13. Receipt A receipt is proof of purchase by the buyer and that the goods were paid for. Treatment of Receipt BuyerSeller -Check the details are correct on the receipt -File the receipt -Complete the receipt -Check the name and the amount is correct

14. Mark – up Formula Profit x 100% Cost Price 1 An item costing €40 is sold for €55. Calculate the mark- up? €15 x 100 % €40 1 = 37.5%

15. Margin Formula Profit x 100 % Selling Price 1 Cost price €40 and the selling price is €50. Calculate the profit margin. €10 x 100 % €50 1 = 20%

16. Exam Question (2010 P2 Q2)