Double-Entry Recording Chapter 4 Flashcards
1
Q
What are the rules for double-entry system?
A
- Each business transaction will affect at least TWO accounts
- At least one account will be debited, where the amount will be recorded in the debit column of that account
- At least one account will be credited, where the amount will be recorded in the credit column of that account
2
Q
What is Dr(+) and Cr(+)
A
Dr(+) Cr(+)
AED LIC
Assets Liabilities
Expense Income
Drawings Capital
3
Q
What is a journal ?
A
A journal is like a diary; it is a daily record of individual transactions.
4
Q
What is the purpose of trade discount?
A
It is ti encourage customers to buy in bulk.
5
Q
What is the purpose of cash discount?
A
It is to encourage credit costumers to pay earlier within a specified time.
