Chapter 6 Key words

Question 1

Double entry Bookkeeping

Answer 1

A system of accounting where the effects of each transaction are recorded

Question 2

Drawings

Answer 2

The money of goods that the owner takes out of the business

Question 3

Dual Effect

Answer 3

Every transaction a business undertakes has two effects on the business

Question 4

General Ledger

Answer 4

A collection of ledger accounts, where the double entry takes place for all the transactions of the business

Question 5

Ledger accounts (T-Accounts)

Answer 5

The accounts in which each transaction is recorded- there will be a ledger account for each type of transaction, such as sales and purchases and for every type of asset or liability

Question 6

PLC account

Answer 6

Purchase Ledger Control

A general ledger account for credit suppliers, representing the total of all the accounts in the purchase ledger.

Part of the double entry system

Question 7

SLC Account

Answer 7

Sales Ledger Control

A general ledger account for credit customers, represents the total of all the accounts in the sales ledger- part of the double entry system