Chapter Five- Double Entry Bookkeeping (Part 2) Flashcards

1
Q

Balance Carried Down

A

In the ledger account the term used to describe the balancing figure that makes the column with the smaller figure total the larger figure

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2
Q

Balance Brought Down

A

Always the same figure as the balance carried down, but used on the opposite side of the account to balance the carried down; the balancing figure is described as the balance brought down

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3
Q

Capital Expenditure

A

On assets used in the long term ie in more than one period (non-current assets)

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4
Q

Capital Income

A

From sales of assets used in the long term

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5
Q

Revenue Expenditure

A

Payments for day-to-day running costs and purchases, including wages and interest paid to the bank

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6
Q

Revenue Income

A

Receipts from sales and other short-term income such as bank interest, rent and commission

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7
Q

Subsidiary Ledgers

A

The sales ledger and purchase ledger, which are memorandum ledgers that are not part of the general ledger, contain a ledger account for each individual credit customer or credit supplier. Not part of the double entry system

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