Chaoter 5 Flashcards
What is a journal book
The journal book is used to record transactions that aren’t recorded in any other book of prime entry so they can be posted to ledger
What is a journal entry
A written instruction to the book keeper to makes a double entry into the ledgers
What are journal used for
To open the accounting records for new businesses
In a new set of accounts what are assets entered as
Debit balance
What are liability and capital accounts entered as in a new set of accounts
As credit balances
What is payroll transactions?
Payment to employees regarding wages
What do wages usually form
Substantial part of a businesses expenditure
What is gross pay
Wages payable to employee before any reductions
What are statutory deductions
Deductions made relating to income tax and employees nic
What is income tax
A tax that is paid by individuals on all sources of income
What is nic national insurance contribution
A tax on employees income deducted from gross pay
What is hmrc
The government responsible for collecting tax
What is voluntary deductions
Non-statutory amounts deducted from employees pay with their consent
What is pension contribution
Employers are required to automatically enrol eligible employees in a pension scheme. Deductions are made for contributions but employees can opt out.
What is net pay
The amount actually paid to the employee
