Introduction into bookkeeping

Question 1

What are cash sales?

Answer 1

Cash sales refer to paying for goods upfront and receiving a till receipt showing what has been bought.

Question 2

What is a till receipt?

Answer 2

A till receipt is a document that shows what has been purchased during a cash sale.

Question 3

Credit sales & purchases

Answer 3

Having goods now and paying later

Question 4

Books of Prime entry

Answer 4

Where transactions are first recorded

Question 5

Trade discount

Answer 5

Definite amount that is deducted from list price of goods for supplies to some customers, intention of encouraging customer loyalty

Question 6

Bulk discount

Answer 6

Works the same as a trade discount but is given by a supplier for sales order above a certain quantity

Question 7

Prompt payment discount

Answer 7

Offered to customers in order to encourage early payment of invoices

Question 8

Purchase order

Answer 8

Buyer-generated document that authorises a purchase transaction

Question 9

Sales order

Answer 9

Seller-generated document that authorises a sale to a customer, issued after receipt of a purchase order

Question 10

Delivery note

Answer 10

Document accompanying goods despatched to customer explaining what the delivery contains.

Question 11

Goods received note

Answer 11

Internal document completed by purchaser that records details of goods received and contains similar information to delivery note

Question 12

Sales invoice

Answer 12

Document that itemises a transaction between a buyer and seller, It’s a request for buyer to make payment for goods/services provided by seller

Question 13

Purchase Order

Answer 13

Buyer generated documents that authorise a purchase transaction

Question 14

Sales Order.

Answer 14

Seller generated document that authorises a sale to a customer, issued after receipt of purchase order.

Question 15

Delivery note

Answer 15

Document accompanying goods despatched to customer explaining what the delivery contains

Question 16

Goods received note

Answer 16

Internal document completed by purchaser that records the details of goods received and contains similar info to delivery note

Question 17

Invoice

Answer 17

Itemises a transaction between a buyer and seller. Request for payment by purchaser for goods sold.

Question 18

Credit note

Answer 18

Document issued by a supplier to customer cancelling part/ all of sales invoice.

Question 19

Code

Answer 19

System of numbers, letters and symbols designed to be applied to a classified set of items, to give a brief, accurate reference,
which helps entry to the accounting records, collation and analysis.

Question 20

Ledger code

Answer 20

Unique reference given to different types of income, expenses, assets and liabilities. It may also be referred to as a general
ledger (GL) or nominal code.

Question 21

Customer account code

Answer 21

Unique reference given to each
individual customer of an organisation.

Question 21

Supplier account code

Answer 21

Unique reference given to each individual
supplier of an organisation.