Glossary
Statement of account
A summary a supplier sends a customer showing invoices, credit notes, payments and the balance owing.
What it means
A document sent periodically by a supplier summarising transactions and the outstanding balance on a customer's account.
Example
At month end a supplier sends a statement showing RM4,500 still owing.
Why it matters
It lets a customer check their records against the supplier's before paying.
In practice
A statement of account is not a book of entry and is not part of the double-entry system. It is a document produced from the supplier's sales ledger. It lists the opening balance, each invoice issued, any credit notes, cash received and cash discounts allowed. It ends with the balance the customer still owes.
For example, a supplier shows an opening balance of RM1,200, adds an invoice of RM450, deducts a payment of RM800 and a credit note of RM50. That leaves RM800 outstanding. The customer uses the statement to check their own purchase ledger balance for that supplier and to query any differences.
Students often confuse it with an invoice. An invoice records a single sale and its amount. A statement summarises the whole running account over a period, pulling every transaction into one figure owing.
If supplier statement reconciliations are new to you, one of our teachers can walk through one with you and show how to spot the differences. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 2.2 Business documents (page 12).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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