Chapter 6 - The Journal And The Source Documents Flashcards
What is Bank Debit Advice
Bank account decreases
Debit - interest expense or other account
Credit- bank
What is a Bank Credit Advice
Bank account increases
Debit - bank
Credit - interest earned or other account
What is the Journal
A book in which the accounting entries for all transactions are first recorded
What is a Cash Receipts Daily Summary
The cheques received from customers on account.
Debit - bank
Credit - accounts receivable
What is a Cash Sales Slip (POS Summaries)
A sale of goods and services for cash
Debit - bank
Credit - sales or revenue
What is the description of a Cheque Copy
1) paying an accounts payable
2) cash purchase of an asset (receipt or bill needed)
3) cash payment of an expense (receipt or bill needed)
4) owner draws out money for personal use
What do you debit and credit on a Cheque Copy
Debit -
1) a liability account such as accounts payable
2) an asset account such as automobiles
3) an expense account such as car expense
4) the drawings account
Credit- bank
What is clearing an account balance
To make that account balance equal zero
What is a Contra Account
An account that has a balance which can reduce the balance of a closely related account
E.g. HST Recoverable and HST Payable
What is The book of original entry
The journal
What is a Journal Entry
It is made up of all the accounting changes for one transaction
What is Journalizing
It is the process of recording accounting entries in the journal
What is an opening entry
The journal entry that starts the book off
What is a Point Of Sale (POS) Terminal
It is a computerized sales register that allows a business and it’s customers to exchange funds electronically
What is a purchase invoice
A purchase of goods or services on account
Debit- asset account or expense account
Credit- accounts payable
What is remittance advice
It is an form accompanying the cheque explaining the payment
Tax percentage
GST (Goods and Services Tax) - 5%
PST (Provincial Sales Tax) - 8%
HST (Harmonized Sales Tax) - 13%
What is retail sales tax (RST)
Provincial sales tax (PST)
What is a sales invoice
A sale of goods or service on account
Debit - accounts receivable
Credit - sales or revenue
What is a transaction log
It is a document which contains detailed information about each transaction
What is a sales tax
Tax dollars generated from business transactions
What is a value added tax
It is a tax charged to both goods and a wider variety of services.
What is remittance
It is when you figure out if the government owes you money or you owe then money.
Amount of remittance OR Refund Claimed
