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Principles of Accounting chapter guide

Source documents

Every entry starts with a document, yet you are unsure which document belongs to which event.

A source document is the paper or record that proves a transaction happened. Every entry in the books starts from one, so knowing which document belongs to which event is the first skill in the subject.

This chapter is part of the SPM Accounting guide. It feeds directly into books of prime entry, where the documents are recorded.

What does the source documents chapter cover?

The chapter has four lessons. They teach you to choose the correct document, read the figures on invoices, credit notes and receipts, connect each document to the entries it causes, and avoid errors in dates and amounts. A practice set ends the chapter.

One example to orient you

Hasnah runs a small shop. She buys RM1 200 of goods on credit from a supplier and receives an invoice. She returns RM180 of damaged goods and receives a credit note.

She later pays RM1 020 by cheque and receives a receipt. That is three documents for three events, and each supports a different entry. The amount owed was 1 200 − 180 = RM1 020, which matches the cheque.

In what order should I study the lessons?

  1. Choosing the appropriate source document builds the map from events to documents.
  2. Reading invoices, credit notes and receipts shows what to take from each one.
  3. Connecting documents with transaction effects links each document to its entries.
  4. Avoiding document date and amount errors covers the checks.
  5. The chapter practice set tests all four.

Who should start where?

A student new to the subject should follow the order above. If you already know the documents but record them wrongly, go to lesson 3. If your figures are right but marks are lost on small slips, go to lesson 4.

If you want a teacher to go through documents with you, see online one-to-one Accounting tuition or the one-hour trial class (from RM50).

Common questions

Why do source documents matter for SPM Accounting?

Each entry in the books of prime entry is based on a document, so choosing the wrong document can lead to the wrong entry. Questions ask you to name the document for a transaction, or to read figures from one.

Do I need to memorise the layout of each document?

Learn what each document shows and who issues it. A layout can differ between businesses, but the information, such as date, amount and parties, is the same.

Which lesson should I read first?

Start with choosing the appropriate source document, which gives the map. Then read the lessons on reading documents and connecting them to entries, and finish with the lesson on date and amount errors.

If the documents blur together when a question lists several at once, one-to-one Accounting lessons let a teacher lay them in order with you and explain what each one proves.

  • Online one-to-one lessons for your child with an experienced teacher.
  • Your first class is a one-hour trial, from RM50. The fee is agreed before you book.
  • Happy with the teacher? Continue with lessons of about 1.5 hours. If not, ask for another teacher.