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











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



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