Double Entry And Accounting Systems Flashcards
Quotation
A business makes written offer to a customer to produce or deliver goods or services for a certain amount of money
Sales Order
A customer writes out or signs an order for goods or services he requires
Purchase Order
A business orders from another business goods or services
Goods received note
A list of goods that a business has received from a supplier
Goods despatched note
A list of goods that a business has sent out to a customer
Invoice
An invoice relates to a sales order or a purchase order. When a business sells goods or services on credit to a customer, it sends out an invoice. When a business buys goods or services on credit, it receives an invoice from the supplier.
Statement
A document sent by supplier to a customer listing all invoices credit notes and payments done by the customer
Credit Note
A document sent by a supplier to a customer in respect of goods returned or overpayments made by the customer
Debit Note
A document sent by a customer to a supplier in respect of goods returned or an overpayment made. It is a formal request for the supplier to issue a credit note
Remittance advice
A document sent with a payment, detailing which invoice are being paid and which credit notes offset
Receipt
A written confirmation that money has been paid
Books of Prime Entry
Its day books where repetitive transactions are captured, all sales invoices may be listen in sales day book. Day books are not part of the double entry system but enable the numbers of double entries to be reduced by ascertaining an aggregate.
Nominal Ledger
The total of the day book, or single transaction, is recorded in the double entry system by being posted to the nominal accounts in the general/nominal ledger.
