Class test Flashcards
1
Q
Sales
A
CR
2
Q
Sales return
A
DR
3
Q
Purchase return
A
CR
4
Q
Discounts allowed
A
Expense therefore DR
5
Q
Discounts received
A
Income therefore CR
6
Q
Accrued expense
A
Increase expense and increase liability
YE - DR Expense CR Accrual
7
Q
Prepayment
A
Decrease expense and increase asset
YE - DR Prepayments CR Expense
8
Q
Accrual hits
A
SFP as current liability
9
Q
Prepayment hits
A
SFP as current asset
10
Q
Deferred (prepaid) income hits
A
SFP as current liability
11
Q
Expenses hit
A
P/L
12
Q
Other income hits
A
P/L
13
Q
Deferred income
A
When business paid in advance for goods
14
Q
Deferred income
A
Decrease income
YE - DR Other income CR Deferred income
15
Q
Accrued income
A
DR Accrued income CR Other income
