bills

Question 1

true or false - a firm must keep a central record of ills that is readily accessible.

Answer 1

true - firms are required to keep a central record of all bills that is readily accessible

Question 2

what are the accounting enteries required when submitting a bill

Answer 2

dr client ledger business account with profit costs and cr profit costs ledger

debit client ledger bsuiness account with vat and cr hmrc-vat ledger with vat.

Question 3

true or false - there are no account entries required in the cash sheet when a firm submits bills to a client?

Answer 3

true - there are no accounting entires required because no money has been paid at this point.

Question 4

which fo the folowing accounting entries are required to record the reduction in a client’s bill?

Answer 4

the accounting entries required to record the reduction in a clients bill are credit client ledger business account. debit profit costs ledger and debit hmrc-vat ledger.

Question 5

true or false - if a client sends you money towards your professional fees in accordance with a quote that you have given over the telephone you can pay the money into your business account as soon as you receiver it?

Answer 5

false 0 you cannot ;ay any money sent towards your professional fees into your business bank account unitl you have sent your client a bill - as it is still client money.