Invoices, Credit Notes, Cheque Counterfoils, Paying-in Slip Counterfoils, Cash Receipts, Till Rolls, Bank statements.
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What Are Bank Charges? SD
Where a bank makes a charge for providing bank services. Could be calculated by number of transactions happened on bank account.
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What Is A Standing Order? SD
Where you set up fixed payments from your bank account for regular payments from instruction from the customer.
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What Are Direct Debits? SD
Used for fixed or variable amounts, money taken out automatically by the company you owe.
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What Are BACS? SD ?
It is the central payment system it is used for direct debit payments
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What is A Credit Transfer? SD
Where money is received through banking system BACS and credited to sellers account.
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Name The 6 Different Types Of Subsidiary Books? Only Credit
Sales Day Book, Puchases Day Book, Sales Returns Day Book, Purchase Returns Day Book, Cash Book and General Ledger.
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Why is It Important To Keep Accounting Records? name Variety Of Reasons
- To record what happened in past to produce a income statement and balance sheet , - To allow fraud to be found by comparing to external information e.g. bank statement. - To monitor amounts business owes and amounts owed to the business.
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Why Would Employees Be Interested In Finance Of A Company?
- If business is able to continue trading and provide employment and able to pay wages..- To assess if the performance will mean they will be able to offer future bonuses.
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Why Would Suppliers Be Interested In A Finance Of A Company?
- To determine if the business can pay for the goods supplied within agreed terms. - The gauge likely hood of future repeating orders.
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Name 3 Stake Holders?
Suppliers, Owner,Employees.
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What Are The Limitations Of The Trail Balance?
Doesn't Show COPROC - Commission, Omission, Error Of Principle, Reversal Of Entries, Original Entry and Compensating Error.
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What Is The Importance Of The Trail Balance?
Used to check arithmetic accuracy. Also Transposition Error, Addition Error, Posting Error, Partial Omission Error, Unequal Posting Error.
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What Is The Double Entry For Goods Sold On Credit?
It is the time delay between writing a cheque and recording in cash book and the cheque being entered on bank statement.
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What Are Outstanding Lodgements?
The amount paid in the bank but not yet recorded on bank statement.
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Importance Of Bank Reconciliation Statements? Part 1
- Main cash book compared to bank statement will determine if any errors so they can be corrected. - Independent can detect fraud verification of cash book balance. - With cash book up to date amended bank balance for trail balance.
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Importance Of Bank Reconciliation Statements? Part 2
- Shows unrepresented cheques over 6 months old, out of date.
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How Are Control Accounts Useful?
- Instant Information since you don't need to add up can print out, Prevention Of Fraud since it is checked by a supervisor regularly, - Location Of Errors, Preparation Of Final Accounts to help with final accounts if no double entry or trail balance
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Limitations Of Control Accounts?
Can't deal with; Omission, Error Of Commission, Original Entry, Compensating Error.
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What is The Formula For Depreciation On Income And Balance Sheet?
Income Statement = Cost of asset - scrap value/ number of years - Balance Sheet = Cost - (Depreciation value + provision for depreciation)
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Other cards in this set
Card 2
Front
What Are Bank Charges? SD
Back
Where a bank makes a charge for providing bank services. Could be calculated by number of transactions happened on bank account.
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