Chapter 4 Flashcards
Copy of an invoice retained by a seller when a credit sale is made
Sales invoice
Invoice received by a customer for a credit purchase made
Purchases invoice
Given to customers for paying their debts promptly
Cash discount
Given to customers who buy in bulk. A deduction on the list price
Trade discount
Price at which the trade usually sells the product
List price
Enables a business to order its bank to pay a certain set amount of money regularly at a stated date to an individual or an organisation
Standing order
Small document that a person depositing money fills in with the date and amount of money being paid by them into their bank account
Paying-in slip
Takes place when funds are transferred from one bank account to another by electronic means
Bank transfer
Sales invoice
Copy of an invoice retained by a seller when a credit sale is made
Purchases invoice
Invoice received by a customer for a credit purchase made
Cash discount
Given to customers for paying their debts promptly
Trade discount
Given to customers who buy in bulk. A deduction on the list price
List price
Price at which the trade usually sells the product
Standing order
Enables a business to order its bank to pay a certain set amount of money regularly at a stated date to an individual or an organisation
Paying-in slip
Small document that a person depositing money fills in with the date and amount of money being paid by them into their bank account
Bank transfer
Takes place when funds are transferred from one bank account to another by electronic means
Credit note
Document issued by a seller of goods on credit to request a reduction in the invoice received
Debit note
A document issued by a purchaser of goods on credit to request a reduction in the invoice received
Where are debit notes recorded?
Nowhere (not the accounting records of the customer and not the accounting records of the supplier)
Are trade discounts recorded in the accounting records?
No
Are cash discounts recorded in the accounting records?
Yes, recorded as discount received or discount allowed
Where does a customer record a credit note?
Purchases returns
Where does a supplier record a credit note?
Sales returns
What is a cheque counterfoil?
The bit left behind in the cheque book
