Chapter Nine Flashcards
How do you complete a T account
Select account name from pick list
Type value
Balance of by inserting totals and showing balance carried down and balance brought down
How to complete a tabular format
Select account name
Insert value in amounts column
Tick whether debit or credit
Where are invoices in respect of credit notes reported
Sales cash book
Where is a credit note in respect of credit sales reports
Sales return day book
What are the four invoices relevant for sales and trade
Credit notes
Invoices
Prompt payment discount
Receipts
What is the second process in accounting
Transfer from book of prime entry to account records eg receivables ledger and general ledger
What is transferring data to ledgers also referred to as
Posting on the ledgers
What is the subsidiary receivables ledger
Contains a ledger account for each credit customer …they are not part of general ledger or double entry
What is the receiveables ledge control account
A general ledger account for credit customer representing the total of all accounts
What does the subsidiary receivables ledger show
How much each credit customer owes at any point
Separate memorandum ledger and not part of the double entry system
What just the receivable ledger control account be reconciled with regularly ?
Receivable ledger
What should the total on the receivables ledger equal?
The balance brought down on the receive ledger control account
What would net amount be posted to
Sales account or purchase account
Where would vat be posted to
Cat control account
Where would gross amount be posted to
Receivables ledger control
Payables ledger control
Bank/cash
