AS Accounting Unit 1
- Created by: taf323
- Created on: 01-04-18 13:38
Double entry bookkeeping
Carriage In: When the buyer pays the carriage
Carriage Out: This is when the seller pays the carriage
Liabilities=Assets - Capital
Capital=Assets - Liabilities
Assets=Capital + Liabilities
Sales = Credit
Purchases = Debit
Debit
Expenses
Assets
Drawings
Credit
Liabilities
Income
Capital
Business documents
Sales Invoice: Made by the seller and sent to the buyer
Cash Receipts: When a payment is made, a cash receipt is issued
Delivery Note: When a business sells good a delivery note is sent with the goods to show all goods being delivered
Credit Note: When you return goods to a supplier or a customer returns good to you issue or receive a credit note
Paying-in slip counterfoil: This is the part of the cheque that is sent to the payee
Cheque counterfoil: This is kept by the payer as a record of the cheque
Statement of account: A statement of account is sent to debtors so show amount owing and transactions occurred.
Cheque: A form of payment. Takes longer to clear than bank transfers
Trade discount: This is when money is taken off the purchase of good when buying large quantities.
Cash Discount: If a payment is made earlier than agreed then a discount will be taken off the amount owed.
Trial balance
Errors that don’t affect trial balance:
· Error of principle: Correct amount, wrong type of account
· Error of omission: No entry in accounting records
· Error of commission: Correct amount, type of account, wrong account
· Compensating Error: Two or more errors balance each other out
· Error of original entry: Correct account, wrong amount
· Reversal of entries: Entries on the wrong side
Errors…
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