Discount received - should be a Cr as it is effective income on the P&L. This is the case when the supplier decides to offer a discount to the business.
Discount allowed - same as a a sales discount. It is debited as a reduction in sales.
Dishonoured Cheques - presented by the customer/client but failed to generate cash for the business. They must therefore be credited on the cash book to reverse the previous booking of cash receipts on the debit side when it was originally presented.
Unpresented Cheques - cheques issued by the business but not banked by the recepient. Therefore the cash book credited by this amount.
Invoice - document issued by the supplier to the customer, identifying the details for the transaction such as price, taxes, quantity, name of each counterparty. The document represents an asset to the supplier based on which the customer owes money to the suppier.
Purchase Order - written authorization from the buyer issued to the seller to acquire goods or services. The purchase order will price, quantity and other material parameters such as quality and delivery conditions.
Delivery Note - document accompanying the shipment of goods specifying description and quantity
Lodgement - act of paying into a bank account
Drawings - withdrawals of cash by the owners of the business from the business
Sales Returns = Returns Inwards
Purchase Returns = Returns Outwards
General Ledger aka Nominal Ledger - a list of all credit and debit transactions with details on each
Trial Balance - a list of all credit and debit ending balances in one table in double entry format. Auditors will start with the trial balance but will use the general ledger to trace any errors in it.
Drawings - in a partnership this is an account separate from the capital account which covers the funds withdrawn by the partners from the business
Imprest System (Imprest Amount) - petty cash management system involving a float which is regularly topped up to a certain level of funds called the imprest amount which is normally sufficient to cover the expected cash needs over the period
A/R ledger control account (not to be confused with the A/R ledger account)
A/R ledger account (Memorandum) - this is a separate list of individual Accounts Receivables for each counter party
Books of Prime Entry: (list-format books) include sales day book, sales returns day book, purchases day book, purchase returns day book, cash book, petty cash book, journal (all other transactions)
Ledger accounts - double entry accounts such as e.g. plant account
Discount allowed - same as a a sales discount. It is debited as a reduction in sales.
Dishonoured Cheques - presented by the customer/client but failed to generate cash for the business. They must therefore be credited on the cash book to reverse the previous booking of cash receipts on the debit side when it was originally presented.
Unpresented Cheques - cheques issued by the business but not banked by the recepient. Therefore the cash book credited by this amount.
Invoice - document issued by the supplier to the customer, identifying the details for the transaction such as price, taxes, quantity, name of each counterparty. The document represents an asset to the supplier based on which the customer owes money to the suppier.
Purchase Order - written authorization from the buyer issued to the seller to acquire goods or services. The purchase order will price, quantity and other material parameters such as quality and delivery conditions.
Delivery Note - document accompanying the shipment of goods specifying description and quantity
Lodgement - act of paying into a bank account
Drawings - withdrawals of cash by the owners of the business from the business
Sales Returns = Returns Inwards
Purchase Returns = Returns Outwards
General Ledger aka Nominal Ledger - a list of all credit and debit transactions with details on each
Trial Balance - a list of all credit and debit ending balances in one table in double entry format. Auditors will start with the trial balance but will use the general ledger to trace any errors in it.
Drawings - in a partnership this is an account separate from the capital account which covers the funds withdrawn by the partners from the business
Imprest System (Imprest Amount) - petty cash management system involving a float which is regularly topped up to a certain level of funds called the imprest amount which is normally sufficient to cover the expected cash needs over the period
A/R ledger control account (not to be confused with the A/R ledger account)
A/R ledger account (Memorandum) - this is a separate list of individual Accounts Receivables for each counter party
Books of Prime Entry: (list-format books) include sales day book, sales returns day book, purchases day book, purchase returns day book, cash book, petty cash book, journal (all other transactions)
Ledger accounts - double entry accounts such as e.g. plant account
No comments:
Post a Comment