A non-source document is one that:

Supports a transaction but is not recorded in the books — Non-source documents support a transaction but are not recorded in the accounting books.

The document that states the price and terms in reply to a buyer's enquiry is the:

Quotation — A quotation is issued by the seller to state the price and terms to the buyer.

The document issued by the buyer to formally order goods is the:

Purchase order — A purchase order is issued by the buyer to formally order goods.

A delivery order serves to:

Confirm the buyer has received the goods — A delivery order is sent with the goods to confirm their receipt.

A statement of account is usually sent by the seller at:

The end of the month — A statement of account is sent at month end to summarise transactions and the balance.

Which of the following is a non-source document?

Statement of account — A statement of account is a non-source document; it is only a summary of the balance.

How many non-source documents are recorded in a journal?

None of them — No non-source document is recorded in a journal; only source documents are recorded.

The usual order of documents before an invoice is issued is:

Quotation → Purchase order → Delivery order — The usual sequence is quotation, then purchase order, then delivery order, and only then the invoice.

Not binding, only price information — A quotation only states the price and terms; it does not bind the buyer.

A statement of account differs from a receipt because the statement of account:

Summarises the balance owing, not proof of payment — A statement of account is a summary of the balance and a payment reminder, not proof of payment like a receipt.

SPM Prinsip Perakaunan — Non-Source Documents Notes & Exercise

Non-source documents are documents that support and smooth the buying and selling process but are not used to record entries in the accounting books. They are usually prepared before an invoice is issued.

Types of Non-Source Document

Quotation — issued by the seller in reply to a buyer's enquiry, stating the price, terms and discount. It is not binding.
Purchase order — issued by the buyer to formally order goods after receiving a quotation.
Delivery order — sent with the goods to confirm that the buyer has received them in good condition.
Statement of account — sent by the seller at the end of the month to summarise all transactions and the balance the customer must pay.

Key idea

Quotation → price information. Purchase order → a formal order. Delivery order → confirmation goods were received. Statement of account → a summary of the balance, a payment reminder.

Example

Bina Company requests a quotation from a cement supplier. Once satisfied, Bina Company sends a purchase order. The cement arrives with a delivery order. At month end, the supplier sends a statement of account showing an unpaid balance of RM6,000. None of these documents is recorded in a journal — only the invoice is recorded.

Their Role in Internal Control

Although they are not recorded in the books, non-source documents are important for a business's internal control. A purchase order lets management confirm that only goods actually ordered are received and paid for. A delivery order lets the buyer check the quantity and condition of goods before signing for them. A statement of account helps the customer reconcile the balance against their own records and spot any difference. In this way non-source documents reduce the risk of fraud and error, even though they are never the basis of a double entry in the ledger.

Remember

A statement of account is neither an invoice nor a receipt — it is only a summary that reminds the customer of the balance owing. Non-source documents are never the basis of a double entry.