Table of Content
It specifies the conditions and terms under which the seller is willing to supply the specified goods and services to the buyer. In today's shipping industry, you should try and supply as much information to the shipping company that... Sections are used to divide a word document into separate parts that require specific formatting that...
Is a reply sent to the potential buyer giving details about the goods or services described in the enquiry 6. May be sent instead of a quotation if the buyer wants to know the range of the sellers products. This is sent from the buyer to the seller showing details of what has to ordered 8.
COMMONLY USED DOCUMENTS IN HOME TRADE
It is generally issued in the event of purchase returns . When goods are paid for in cash, usually the seller will issue a cash memo in form of a cash register slip. Usually, the name and the address of the shop are written on top of the cash memo. It contains the date, the name of sold goods, quantity, amount of the purchase, applicable discount, and sales tax. A seller hands over the cash memo to a buyer with his signature. The cash memo is generally prepared in triplicate.
When the invoice is prepared several copies are prepared at the same time one of thes copies is the advice note which tells the buyer that the products have been dispatched. Is another type of invoice which is sent with the goods to the buyer. Is the bill completed by the seller for the goods bought on credit.
Documents Used in Home Trade
Business must record all their credit sales or credit purchases in this document. They are usually made out in duplicate, original for the buyer and duplicate for the seller. They are sent with goods although sometimes they may be sent separately. A sales order is an internal document generated by the seller and kept on file specifying the details about the product or services ordered by the customer. A sales order should record the customer’s originating purchase order which is an external document.
They usually carry information such as the customer’s name, shipping address, transaction date, products ordered, descriptions, units of measure, quantities, prices, and taxes. Many sales orders are no longer paper-based, but rather electronically. If the goods are returned to the seller for any reason at all he must write out a credit note to show that he has received the returned goods and that he has credited the buyer account. They show the same details as an invoice except that they are printed in red so that they are not confused with invoices.
FUNCTIONS OF RETAILERS
I) If the seller is convinced that the buyer is credit worthy, arrangements are made to deliver the ordered goods or services to the buyer. The recommended unit prices of the products -Any discounts offered Price list show the prices of the commodities at that time. This is a letter written by a potential buyer to the seller to find out the goods and services offered by the seller. A closed economy or trade lose the opportunity to get advanced and latest products and services with... Commercial banks are of utmost importance to home and foreign trade. This will be sent to a customer advising them of anything that is relevant to the product or service that they are paying for, such as delivery dates.
This is a document prepared by the seller and sent to the buyer, giving a summary of all the dealings/transactions between them during a particular period of time, usually a month. Explain five documents used in home trade that are prepared by the buyer. The customer fills in an application form obtained from a bank and hands it over to the bank together with the money she wants to transfer and a commission for the service.
What are the documents used in home trade?
The pay-in-slip is a proof of transaction document received from a bank for depositing money into a bank account. The process involves filling up a form at the bank, with details of the depositor, date of transaction, and amount deposited. Pay-in-slip must be signed by the bank clerk with the official bank stamp on the counterfoil. Bookkeepers use the pay-in-slip counterfoil as a source document for recording the transaction. When any money is received, the person who receives it should immediately write out a receipt. A receipt is evidence of payment and must be sent to the payer .
Asking for the availability of goods, their sizes, prices, delivery dates and terms of sales. Quotations so as to compare prices and terms of payment. The purpose of the credit note is to reduce the total invoice amount by the amount of the overcharge. Iv) It is used as a source document in recording the transaction in the book of accounts.
Creditor a specified sum of money at a specified time/date. EFT is a method of transferring money from one account to another where computers are used. It is a contract between the exporter and the shipping company. It is therefore an evidence of the contract to carry the goods. State two uses of indent in international trade. Cash Basis - goods are paid for before or on delivery or a short while after delivery.
They enable a person to travel without having to carry a lot of cash. Bearer, who usually would have bought that cheque from issuing bank. It is therefore more readily acceptable than personal cheques.
A) Informing the buyer that the goods are on the way so that in case of any delay in delivery, the buyer can make inquiries. Documents used in hometrade.docx - Documents of home trade... Ii) Advice note This is a document sent by the seller to the buyer to inform the buyer that the ordered goods have been dispatched. It is usually sent through the fastest means possible. A prospective buyer will study the terms and conditions stated in them, and then may decide to buy products or not.
These are plastic cards issued by financial institutions e.g. banks that enables a person to purchase goods and services from any business that accepts them. This is a document sent to the buyer by the seller to demand for payment for goods delivered or services rendered. A purchase order plays a big role in the purchasing of goods.
A cheque is dishonored if the bank refuses to pay and returns the cheque to the drawer. The person presenting it to the bank is the one who is paid. These are the methods or ways the buyer may use to settle debts arising from a business transaction. 6000 cash in hand and a bank overdraft of Sh. 2000; during the month the following transactions took.
They are instead paid in future in a lump sum or in several instalments. This stage involves the seller requesting or demanding for payment from the buyer for the goods or services delivered. Iii) Delivery note This is a document sent by the seller to the buyer to accompany the goods being delivered. An acknowledgement note is a document sent by the seller to the prospectiv buyer to inform him/her that the order has been received and it is being actedupon.
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