Financial Accounting Flashcards
DE sales tax (making sale)
dr receivables (amount including tax)
cr sales tax account
cr sales account (excluding tax)
DE sales tax (purchase)
dr purchase account (exclude sales tax)
dr sales tax account
cr payables (includes tax)
trade discount
reduction in the amount paid for goods
NOT accounted for in accounting records
Customer not expected to take settlement discount
record at list price:
dr receivables
cr revenue
when discount is taken:
dr cash
dr revenue
cr receivables
when discount not taken:
dr cash
cr receivables
opposite if expected of customer to take discount
sales day book
credit sales
accrued expense
dr expense account
cr accrual account
DE prepayment
dr prepayment account
cr expense account
accrued income
dr accrued income account
cr income account
prepaid income
dr income account
cr prepaid income
DE issue at market price
dr bank (issue price * no of shares)
cr share capital account (nominal value * no shares)
cr share premium (issue price - nominal * no shares)
DE rights issue
dr bank
cr share capital
cr share premium
DE bonus issue
dr share premium/ retained earnings (nominal * no shares)
cr share capital (nominal * no shares)
DE irrecoverable debts
dr irrecoverable debt expense
cr receivables/sales ledger control account
DE irrecoverable debts recovered
dr receivables/ SLCA
cr irrecoverable debt expense
dr bank
cr SLCA
dr bank
cr irrecoverable debt expense
DE allowance for receivables
dr irrecoverable debt expense
cr allowance for receivables
