Carriage, Division of ledger and Contra Entries

Question 1

Define carriage

Answer 1

Cost of transporting goods

Question 2

Define carriage inwards

Answer 2

Bringing the goods to the business

Question 3

Define carriage outwards

Answer 3

Deliver the goods to the customer

Question 4

What are the divisions of ledger?

Answer 4

Sales ledger = all the debtors
Purchases ledger = all the creditors
Cash book = cash/bank
Nominal ledger = everything else

Question 5

What are the contra entries for when paying cash into bank?

Answer 5

Debit bank write cash
Credit cash write bank

Question 6

What are the contra entries for when withdrawing cash from business?

Answer 6

Debit cash write bank
Credit bank write cash

Question 7

What are the 2 types of cash discount?

Answer 7

Discount allowed
Discount received

Question 8

Define discount allowed

Answer 8

When a debtor is allowed a discount for early settlement

Question 9

Define discount received

Answer 9

When the business receives a discount for early settlement

Question 10

Define dishonoured cheque

Answer 10

A cheque was received from a debtor but the bank refuses to pay (insufficient funds, wrong date, etc.)