Before recording a transaction, a bookkeeper must have a source document. A source document is the original record that proves a transaction occurred.

Common source documents in Tanzanian businesses:

These documents provide the evidence needed to record transactions correctly in the books.

Every business transaction has two aspects:

1. Giving aspect – what the business gives out (cash, goods, or services)
2. Receiving aspect – what the business receives (cash, goods, or services)

In bookkeeping, these two aspects are recorded as:

• Debit (Dr) – the receiving aspect
• Credit (Cr) – the giving aspect

Remember: For every transaction, the total debits must equal the total credits.

Step-by-Step Process

1. Identify the source document – Locate the original record (receipt, invoice, etc.)
2. Identify the two parties – Determine who is involved in the transaction
3. Determine the two aspects – What is being given and what is being received?
4. Apply the debit and credit rules – Record the receiving aspect as debit and the giving aspect as credit
5. Post to the appropriate accounts – Enter the amounts in the correct ledger accounts

Example 1: Cash Purchase of Goods

Transaction: On May 3, 2024, Maria's Shop bought sugar worth Tshs. 50,000 for cash. The shop received a receipt.

Analysis:

• The shop gives cash (credit Cash)
• The shop receives goods (debit Purchases or Stock)

Recording:

Example 2: Credit Sale of Goods

Transaction: On May 5, 2024, Maria's Shop sold rice worth Tshs. 30,000 on credit to Juma. An invoice was issued.

Analysis:

• The shop gives goods to Juma (credit Sales)
• The shop receives the promise of payment (debit Juma's Account / Debtors)

Recording:

Example 3: Cash Payment for Transport

Transaction: On May 6, 2024, Maria's Shop paid Tshs. 5,000 cash for transporting goods to the market. A cash voucher was issued.

Analysis:

• The shop gives cash (credit Cash)
• The shop receives a service (debit Transport Expense)

Recording:

Example 4: Paying a Previously Credited Supplier

Transaction: On May 8, 2024, Maria's Shop paid Tshs. 25,000 cash to Kibo Wholesalers to settle a previous credit purchase. A cheque was issued.

Analysis:

• The shop gives cash (credit Cash)
• The shop receives reduction in amount owed to supplier (debit Kibo Wholesalers / Creditors)

Recording:

• Always start by locating the source document — this is your evidence
• Every transaction affects at least two accounts
• Debit the receiver, credit the giver
• The total of debits must always equal the total of credits
• Use Tanzanian shillings (Tshs.) in all your recordings

A Form 1 student in Tanzania whose parent runs a duka in Arusha or Mwanza can apply this skill directly. When the parent receives a handwritten receipt from a supplier or issues an invoice to a customer, the student can help record these transactions in a simple day book, ensuring the business knows exactly how much money came in and went out — just like the bookkeeping done in larger shops and supermarkets across Tanzania.