Accounting definitions

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Sales Invoice
Following a Credit Sale, the supplier send the customer an invoice stating how much is owed and when the payment is required, along with product information.
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Purchase Invoice
Following a purchase invoice, we would send a customer an invoice stating how much is owed along with due date and product information
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Cheque Counterfoils
Stub left in a chequebook providing information of any cheques that have been written to suppliers this includes the amount date it was wrote and name of supplier
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Paying in slip counterfoils
Stub left in a paying in book highlighting any cheques or cash received from customer which have been paid into our bank. This includes the amount, date and name of receiver of cheque
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Cash receipts
receipts received from suppliers when we have purchased goods or services paid by cash. It provides information like name, amount and information of the products
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Till Rolls
Provides a summary of all cash sales that have taken place. This is usually a running total and include the date and amount received.
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Credit Notes
sent to customers when they return goods, which were initially sold on credit to show they don't owe money anymore or a reduced amount
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Bank Statement
Record of any bank transactions, such as money paid in, paid out, confirmation of any electronic transactions.
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Cash
Payments made by coins or notes
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Cheques
A document instructing to transfer money, money is transferred from drawers to payees
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Debit Card
Money from customers bank account is automatically transferred electronically to a suppliers account. You can only spend the amount that you have in your bank account.
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Standing Orders
Regular payments of the same amount such as paying rent. This is an electronic transfer which requires prior arrangement
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Direct Debits
Regular payments whereby the payments can vary in regularity and amounts, the recipient is in charge of the payment such as phone bills
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Bank Giro Credit
Allows money to be paid into a bank account. This could be a slip attached to a gas bill, this ensures the money goes straight to correct bank account and helps identify which customers have paid
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Credit Transfer
Amounts paid directly into the bank by a customer who has the necessary bank details such as sort code account number and name of account holder. These can be receipts from customers or payments to suppliers, they're usually electronic.
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Credit Cards
When paying with the card the supplier will receive the money from the credit card company (Barclaycard) the company send the business a statement showing transactions that month You can only spend up to the agreed limit If prompt payment no interest
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Bank Charges
Banks charge for providing banking services. Businesses do not have free banking like individual people do in everyday life. They usually make a charge for every transaction including paying money in or taking it out
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Trade Discount
Bulk buying, deducted from a invoice and cannot be disallowed, usually a larger percentage than a cash discount also after this there is not further treatment.
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Cash Discount
prompt payment, not deducted until payment, it can be cancelled of terms aren't met, usually a smaller % than trade discount.
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Unrepresented cheques
A cheque that has been drawn and entered as a credit in the cash book that has not yet been processed by the bank therefore not showing in the bankstatement
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Uncleared Lodgements
Funds that have been received and entered as a debit in the cash book that haven't yet been processed by the bank and therefore not showing on the bank statement
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Accrual
An expense which is due, this is unpaid at the end of the accounting period. it therefore increases expenses in the income statement and increases current liabilities in the balance sheet
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Prepayments
Expenses that have been paid in advance. it will reduce the amount of expenses at the end of the year, and in the income statement, it will increase current assest in the balance sheet
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Cost Of Sales
The cost of those goods that were actually sold in the current accounting period we must adjust the purchases figure for opening and closing stock cos-revenue=gross profit in income statement
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Other cards in this set

Card 2

Front

Following a purchase invoice, we would send a customer an invoice stating how much is owed along with due date and product information

Back

Purchase Invoice

Card 3

Front

Stub left in a chequebook providing information of any cheques that have been written to suppliers this includes the amount date it was wrote and name of supplier

Back

Preview of the back of card 3

Card 4

Front

Stub left in a paying in book highlighting any cheques or cash received from customer which have been paid into our bank. This includes the amount, date and name of receiver of cheque

Back

Preview of the back of card 4

Card 5

Front

receipts received from suppliers when we have purchased goods or services paid by cash. It provides information like name, amount and information of the products

Back

Preview of the back of card 5
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