Day Books and Ledgers Flashcards
what is recorded in the cash receipts book
all transactions into the bank account
what is recorded in the sales day book
credit sales
where are the primary day book totals posted
to the accounts in the nominal ledger
what is recorded in the sales ledger
memorandum accounts of customers
what is debited and credited with regards to sales returns
credit TRs
Debit sales returns
give credit note to customer
why do we debit VAT on returns inwards
we do not owe as much to revenue anymore as that transaction has been voided
closing balance of the Trade Payables must equal
the total of the individual balances in the purchases ledger
what are petty cash payments
small cash out payment
what is the imprest system of petty cash
controls the amount of petty cash expenditure
paper receipts and cash on hands equals the impressed amount
each month the petty cash is topped up to the imprest amount
what is recorded in the purchases day book
purchases made on credit
in what book do cash sales go
cash receipts book
where do payments made to trade payables go
cash payments book
where is cash taken for petty cash purposes recorded
cash payments book
what is debited and credited to the general ledger from the cash receipts day book
DEBIT bank
CREDIT TRs
CREDIT Sales
CREDIT Capital
what is debited and credited to the general ledger from the purchases day book
DEBIT Purchase
CREDIT TPs
what is debited and credited to the general ledger from the sales day book
CREDIT Sales
DEBIT TRs
what is debited and credited to the general ledger from the cash payments day book
DEBIT TPs
DEBIT purchases
CREDIT bank
what is the trade payables account made up of
DEBIT -> Cash payments book Purchases
CREDIT -> Purchases Day Book Money given back to suppliers
what is the trade payables account made up of
DEBIT -> Sales day book credit sales made to customers
CREDIT -> cash reciepts book, money paid back by credit customer
Which balance should agree with the trade payables balance
purchases ledger total
