Chapter Severn Flashcards
What do balance c/d mean?
The term used to describe the balancing figure that makes the colour with the smaller figure total the larger figure
What does balance b/d mean?
The same figure as the balance carried down but in three opposite sides
What is an initial trail balance ?
A list of the debit and credit balance brought down on the ledger accounts
What is not includes included in the trail balance ?
Receivable and payable ledgers as they sit outside of the general ledger
What is the difference between the subsidiary accounts and the general ledger
The subsidiary accounts are not part of the double entry but are completely separate memorandum accounts
What is capital expenditure
On assets used in long term ie in more than one period (non current assets)
What is revenue expenditure
Payment for day to day running costs and purchases including wages
What is revenue income
Records from sales and other short term income such as interest from the bank
Example of revenue expenditure
Purchase of goods for resale and bills such as rent, electricity, and repairs to assets such as machinery
Example of capital expenditure
Purchase/improvement of machinery, vechiles, and office equipment.. these are shown as non current in the statement of financial position
Example of capital income
Sales of non current assets…property , equipment
Cash injected by the owner
