A service the trader has used in the current year, but has not yet paid for - current liability in balance sheet
1 of 21
Bad debt
Debtors who are unable to repay their debt to the trader as they have been declared bankrupt - expense in income statement and deducted from recievables in the balance sheet
2 of 21
Capital
The investment in the business by the owner - difference between credit and debit on the trial balance
3 of 21
Carriage out
The cost of the transportation of goods to the customer - expense in profit and loss of income statement
4 of 21
Carriage in
The cost of the transportation of goods from the supplier to the trader - expense in the trading income statement
5 of 21
Discounts allowed
Discounts the trader gave the customers for prompt payment - debit of TB, expense in the income statement
6 of 21
Discounts recieved
Discounts the trader recieved from the suppier for prompt payment - credit in TB and added to gross profit in income statement
7 of 21
Current Assets
Resources the trader owns and intends to turn into cash such as stock and debtors and therefore will be kept for less than one year.
8 of 21
Current Liabilities
Debts the trader owes to creditors that must be repaid with in one financial year such as suppliers
9 of 21
Depreciation
The reduction in the value of fixed assets because these resources have a finite life and will need to be replaced.
10 of 21
Drawings
Resources withdrawn by the owner from the business such as stock or cash and so reduce the owner’s equity - deducted capital account in the balance sheet
11 of 21
Non current assets
Resources the trader owns and intends to keep for longer than one year such as premises or vehicles because they are essential to the long term operation of the business.
12 of 21
Gross profit
The profits made by deducting cost of sales from sales revenue and represent the profit made before taking into account overheads - recorded in income statement
13 of 21
non current liabilites
Debts owed by the traders to a creditor that must be repaid after one year such as bank loans or mortgages
14 of 21
Net Profit/loss
The positive or negative figure left after all overheads are deducted from revenue - increases or decreases capital in the balance sheet
15 of 21
Expenses
Non trading expeneses such as insurance - deducted from gross profit to give net profit in the income statement
16 of 21
Prepaid expense
A service the trader has paid a supplier for in the current financial year but that have not been used - current asset in balance sheet
17 of 21
Returns in
Goods returned to the trader by a customer - credit note issued - expense in the income statement
18 of 21
Returns out
Goods returned by the trader to the supplier - credit note recieved - added to revenue in the income statement
19 of 21
Revenue
The cash generate from the sales of a good/service to the customers - income statement 1st
20 of 21
Straight line depreciation
(Cost - residual value) / life in yrs
21 of 21
Other cards in this set
Card 2
Front
Debtors who are unable to repay their debt to the trader as they have been declared bankrupt - expense in income statement and deducted from recievables in the balance sheet
Back
Bad debt
Card 3
Front
The investment in the business by the owner - difference between credit and debit on the trial balance
Back
Card 4
Front
The cost of the transportation of goods to the customer - expense in profit and loss of income statement
Back
Card 5
Front
The cost of the transportation of goods from the supplier to the trader - expense in the trading income statement
Comments
No comments have yet been made