chapter 1

Question 1

ledger

Answer 1

a book or file containing accounts

Question 2

ledger accounts

Answer 2

a history of all financial transactions of a similar nature

Question 3

captial

Answer 3

money invest into the business by its owners

Question 4

capital account

Answer 4

the account that records the money invested in a business by its owners

Question 5

postings

Answer 5

the process of recording financial transactions in ledger accounts

Question 6

purchases

Answer 6

goods bought from suppliers that will be resold to customers

Question 7

sales return (return inwards)

Answer 7

a customer who already bought goods sends them back to the seller. A refund is given off any money paid because goods are faulty or incorrect goods were delivered.

Question 8

Purchases return

Answer 8

purchased goods that are sent back to the supplier who agrees to accept them and return any money paid.

Question 9

drawings

Answer 9

the money the owner takes out for personal use.