Double Entry Book Keeping Flashcards
1
Q
What is double entry book keeping
A
Process of making a debit entry and a credit entry for each transaction
2
Q
What is drawing
A
Any value taken from the business by the owner of that business
3
Q
What is Carriage inwards
A
The cost of bringing the goods to the business
4
Q
What is carriage outwards
A
The cost of delivering the goods to the customer
5
Q
What is sales ledger
A
Where credit customers are maintained
6
Q
Purchase ledger
A
Where credit suppliers are maintained
7
Q
What is general ledger
A
Where all the other accounts are mainatained
8
Q
What is a bank overdraft
A
Bank overdraft occurs when more has been paid out of the bank than was put into the bank
9
Q
What is dishonoured cheque
A
A cheque received which the debtors bank refuses to pay
