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Accounting > Journals > Flashcards

Journals Flashcards

1
Q

When cash purchases are made, what do we assume they are?

A

Via EFT

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2
Q

What is the accounting rule?

A

That for every debit there is a credit.

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3
Q

What is the debit entry in the bank for CRJ?

A

Total Receipts

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4
Q

What is the credit entry in Bank for the CPJ?

A

Total Payments

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5
Q

What must you underline in the Analysis of Receipts column?

A

Final daily entry

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6
Q

Where must you put the name of the person or business you received money from / paid money?

A

Details/Name of Payee columns respectively.

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7
Q

Where must you put the name of the General Ledger account?

A

Sundry account details column.

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8
Q

Where must you enter transactions and what the money was for.

A

Bank column and into a corresponding column

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9
Q

What proof of payment represents EFTs?

A

B/S - for any internet or cellphone banking payments

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10
Q

What creates the selling price?

A

Cost price + profit mark-up

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11
Q

What does cost price equal?

A

Cost price = selling price - profit

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12
Q

What makes up the profit?

A

Profit = selling price - cost price

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13
Q

What do we assume cost price is always?

A

Percentage out of 100

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14
Q

What will the profit mark-up will always be given as?

A

Percentage out of 100

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15
Q

Where do you put what you want in a fraction?

A

Numerator

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16
Q

What is Want over Got?

A

Put what you want to find in the numerator place in the fraction

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17
Q

Which one should be greater the selling price or cost price?

A

Selling price is greater

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18
Q

Define Ben swims to Cairo

A

Used when selling

Bank, Sales, Trading stock, Cost of sales

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19
Q

Who goes together in Ben Swims To Cairo?

A

Banks and sales

Trading stock and cost of sales

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20
Q

When is trading stock credited?

A

When it decreases

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21
Q

What does cost of sales refer to?

A

Original cost to the business of the trading stock that has just been sold to someone else

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22
Q

What does DEAD mean?

A

Debit
Expenses - oe
Assets
Drawings

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23
Q

What does CLIC refer to?

A

Credit
Income
Liabilities
Capital

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24
Q

What is the source document for a cash sale?

A

Cash register roll (CRR)

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25
Q

When cash sales take place, what should you put in the details column?

A

Sales

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26
Q

What happens to the analysis column current income?

A

Now called Sales

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27
Q

What does sale refer to in the CRJ?

A

Selling price of items sold

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28
Q

What does cost of sales refer to in the CRJ?

A

Cost price of items sold

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29
Q

Where will the totals from the CRJ be posted?

A

General Ledger at the end of the month

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30
Q

What does direct deposit mean?

A

Directly to the bank - EFT (B/S)

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31
Q

Why should you not add the cost of sales to the amount?

A

Money spent not received

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32
Q

Every time you make more sales what do you have more of?

A

Cost of sales

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33
Q

Are you allowed to say EFT?

A

Never write EFT

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34
Q

What are cash sales recorded in?

A

Cash Receipt Journal

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35
Q

What are cash purchases of stock recorded in?

A

Cash Payments Journal

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36
Q

What what is the source document used to record a cash purchase of stock?

A

Bank statement

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37
Q

When purchases of stock take place, what should you put in the Name of Payee column?

A

The name of the business

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38
Q

Where should trading stock be put in in the CPJ?

A

Trading stock has been given an analysis column. If not the sundry column

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39
Q

Where will the totals from the CPJ be posted?

A

General Ledger at the end of the month

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40
Q

What is trading stock also known as?

A

Inventory, merchandise, stock and trading stock

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41
Q

If it says drew cash in the CPJ, what should you put in the name of payee?

A

Cash

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42
Q

How long is a journal valid for?

A

One month

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43
Q

At the end of each month, what happens to the journal?

A

The journal is totalled them posted to the general ledger

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44
Q

What forms T accounts?

A

A list of accounts

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45
Q

How many sections has the general ledger been divided into?

A

Two sections

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46
Q

Name the two sections of the general ledger

A

The balance sheet section and the nominal accounts section

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47
Q

What accounts of found in the balance sheet section?

A

Owners equity, fixed assets, current asset and liability

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48
Q

What account are found in the nominal account section?

A

Income and expenses

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49
Q

Is an item appears in the sundry accounts column of the journal where does it get posted?

A

It gets posted on the specific day it occurred

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50
Q

If a column has been totalled when will the total of the column get posted?

A

Last day of the month

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51
Q

When posting cash journals to the general ledger, what will the name of the corresponding accounts in the detail column be?

A

Bank

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52
Q

Why is cost of sales and exception? General ledger

A

Course of sales does not affect the bank. It is a record of the value of stock that has been sold

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53
Q

Is cost of sales credited or debited? gl

A

Debited to the cost of sales account with the details of trading stock

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54
Q

Is trading stock debited or credited? gl

A

Crediton to the trading stock account with details of cost of sales

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55
Q

What happens to cost of sales and trading stock in the general ledger?

A

The expense cost of sales has increased and the acid trading stock has decreased

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56
Q

How do you balance an account in the general ledger?

A
  1. See which side is greater
  2. Add up the individual entries on debit side
  3. Put the same total on the credit side
  4. Add amounts on credit side
  5. Workout the difference - put on credit
    ^ in details said balance c/d
  6. Take same amount and put it on debit side
    ^ balance b/d
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57
Q

When should you balance an account?

A

When there is a debit and credit side in an account

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58
Q

What happens if an account has only entries on one side?

A

Total it

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59
Q

How do you total accounts in the general ledger?

A

Draw a line under the last amount and add up the entries

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60
Q

Why should you not draw a line underneath the total in the general ledger?

A

It acts as an opening total for the next month

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61
Q

In the nominal accounts section where does sales go?

A

Credit side

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62
Q

In the nominal accounts section where does cost of sales go?

A

Debit side

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63
Q

In the nominal accounts section where does expenses go?

A

Debit side

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64
Q

How long does the general ledger run for?

A

The entire lifespan of the company

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65
Q

What does the general ledger contain?

A

Contains information from previous months

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66
Q

What are opening balances?

A

Balances or totals that are brought down at the beginning of each month

67
Q

What day of the month are the opening balances brought down

A

First day of the month

68
Q

What are opening balances details in balance sheet section?

A

Balance

69
Q

What are opening balances details in nominal account

section?

A

Total

70
Q

To sell something what should you do?

A

Buy something

71
Q

Why is sales an exception when recording cash sales in the accounting equation?

A

A sale transaction is actually a two-part transaction and therefore it has four accounts involved

72
Q

Why is sales 82 part transaction?

A

Selling price and cost price

73
Q

What are the four accounts involved in the sales transaction equation?

A
  • sales
  • bank
  • cost of sales
  • trading stock
74
Q

What is the first part of the sales transaction in the accounting equation?

A

The selling price which includes sales and bank

75
Q

What is the second part of the sales transaction in the accounting equation?

A

Cost price which includes cost of sales and trading stock

76
Q

What is sales in the accounting equation?

A

Income and increases owners equity on the credit side

77
Q

What is bank in the accounting equation?

A

An asset that increases on the debit side

78
Q

What is cost of sales in the accounting equation?

A

An expense and increases owners equity on the debit side

79
Q

What is trading stock in the accounting equation?

A

Acid and decreases on the credit side

80
Q

Why is trading stock put on the credit side in the accounting equation?

A

The merchandise is being sold and therefore no longer on the shelves

81
Q

What is equipment?

A

Asset

82
Q

Trading stock decreases what else would decrease?

A

Cost of sales

83
Q

When trading stock sells what increases?

A

Bank

84
Q

What is income do to owners equity?

A

Increase

85
Q

What does expenses do to owners equity?

A

Decreases

86
Q

Why does cost of sales affect owners equity?

A

And expense and decreases

87
Q

Where is the source document and journal recorded in the accounting equation?

A

The first two columns

88
Q

Where is a + entered in the accounting equation?

A

In assets, owners equity or liability is to show the effect

89
Q

What are the different types of source documents?

A

Receipt, cash register roll, bank statement

90
Q

When does a receipt occur?

A

Owners contribution (may be B/S), tenant pays rent

91
Q

When does a cash register roll occur?

A

Cash sales

92
Q

When does a bank statement occur?

A

EFT is, debit or credit card, online payments

93
Q

What is packing material?

A

Expense

94
Q

When is Ben swims to Cairo used?

A

Cash sales

95
Q

When is Dan swims to Cairo used?

A

Credit sales (invoice, debtors journal)

96
Q

What is debtors control?

A

Asset

Pay later or buy on credit

97
Q

Is debtors control debited or credited?

A

An asset that is debited when increased

98
Q

What can’t most businesses survive without?

A

They can’t survive by only selling their trading stock for cash

99
Q

What is necessary for businesses to do with credit sales?

A

Necessary to allow their customers to buy from them on credit

100
Q

A customer who a business sells on credit is known as?

A

Debtors

101
Q

Who are debtors?

A

People who own the business money and are considered assets

102
Q

What source document is used to record a credit sale?

A

A duplicate credit invoice

103
Q

Who is the original credit invoice given to you?

A

The customer

104
Q

Although the customer only needs to see the selling price how is the cost price shown?

A

Shown on the invoice in the form of a price code or barcode

105
Q

What does the price code or barcode assist with?

A

The calculation of the cost of sales and with stock control

106
Q

When a business uses a secret price code how many letters do they choose?

A

A word with 10 letters

107
Q

What do the 10 letters of a price code represent?

A

A number from 0 to 9

108
Q

Where is the barcode written?

A

On the invoice letters

109
Q

What is a debtors journal used for?

A

Transactions where goods have been sold on credit

110
Q

When we sell on credit what happens to our assets?

A

Assets increase because our debtors over us more

111
Q

When debtors pay us back what happens to the assets?

A

Assets in the form of debtors control will decrease as our date is no longer owe us

112
Q

What happens to the bank when the debtors pay back the money?

A

The bank or decrease therefore increasing assets.

113
Q

When debtors pay back assets decrease but increase what does this mean?

A

There is a neutral affect on the assets

114
Q

When the accounting equation involves debtors control how many accounts are involved?

A

Four accounts

115
Q

What are the four accounts involved in credit transactions in the accounting equation?

A
  • sales
  • debtors control
  • cost of sales
  • trading stock
116
Q

What is the first part of the accounts involved in the accounting equation when a credit transaction occurs?

A

Selling price which involves sales and debtors control

117
Q

What is the second part of the accounts involved in the accounting equation when a credit transaction occurs?

A

Cost price which includes cost of sales and trading stock

118
Q

What are sales in terms of a credit transaction in the accounting equation?

A

Income and increases owners equity on the credit side

119
Q

What is debtors control in terms of a credit transaction in the accounting equation?

A

Asset that increases on the debit side

120
Q

What is debtors control also known as?

A

Accounts receivable

121
Q

What are cost of sales in terms of a credit transaction in the accounting equation?

A

Expense and increases owners equity on the debit side

122
Q

What are trading stock in terms of a credit transaction in the accounting equation?

A

Acid and decreases on the credit side

123
Q

What is the difference between a cash sale and a credit sale in the accounting equation?

A

In a cash sale bank increases whereas in a credit sale get his control increases

124
Q

When our entries in the debtors journal made?

A

Daily basis

125
Q

When is the debtors journal drawn up?

A

Join up for a month in total at the end of the month which is posted to the general ledger

126
Q

Well transactions are recorded in the debtors ledger?

A

Individual debtors accounts

127
Q

What is the heading for the debtors journal?

A

State the name of the business and the month

128
Q

What is the folio number of the debtors journal?

A

Use any folio column of the general ledger

129
Q

What is the number of the source document in a debtors journal?

A

Invoice 101

130
Q

What is the day in the it is journal?

A

Date in which the transaction occurred

131
Q

What is debtor in the debtors journal?

A

Whom the business sold goods

132
Q

What is folio in the debtors journal?

A

Used for the debtors ledger as a reference to the individual debtors accounts

133
Q

What is sales in the debtors journal?

A

Refers to the total selling price shown on each invoice, which is recorded in the journal each day

134
Q

What is cost of sales in the debtors journal?

A

Refers to the total cost price of each invoice

135
Q

Why is there no sundry accounts in the debtors journal?

A

Only transactions are recorded our credit sales

136
Q

What is a CRJ used to record?

A

CRR, cash sales, sales, received

137
Q

What is a CPJ used to record?

A

Paid, direct payment, EFT

138
Q

What is a DJ used to record?

A

Credit, invoice, sold on account

139
Q

When there is no specification, what should you assume?

A

Bought on credit

140
Q

What happens when debtors are unhappy with the goods they have received?

A

Debtors will return the goods to the seller or ask for a refund on an overcharge

141
Q

Why would debtors be unhappy with a good?

A

It may have been incorrect or they may have been overcharged as the discount was not deducted

142
Q

What happens with a credit note in the debtors allowance?

A

A credit note will be issued by the seller to the data for an amount that will credit from the debtors account

143
Q

What is the source document for debtors allowance?

A

A duplicate a credit note

144
Q

When debtors return goods, what happens to the assets?

A

Assets decrease because our debtors owe us less

145
Q

How many accounts are involved when debtors allowance takes place in the accounting equation?

A

Four accounts

146
Q

What is the first part of the accounts involved in the accounting equation when a debtors allowance occurs?

A

Original selling price which includes debtors allowance and debtors control

147
Q

What is the second part of the accounts involved in the accounting equation when a debtors allowance occurs?

A

Original cost prices which includes cost of sales and trading stock

148
Q

What are the four accounts involved in debtors allowance in the accounting equation?

A
  • debtors allowance
  • debtors control
  • cost of sales
  • trading stock
149
Q

What are debtors allowance in terms of a debtors allowance transaction in the accounting equation?

A

Expense and decreases OE on debit side

150
Q

What are debtors control in terms of a debtors allowance transaction in the accounting equation?

A

Asset that decreases on credit side

151
Q

What are cost of sales in terms of a debtors allowance transaction in the accounting equation?

A

Expense that is decreasing. Increasing OE on credit side

152
Q

What are trading stock in terms of a debtors allowance transaction in the accounting equation?

A

Asset that increases on the debit side

153
Q

What happens to the stock returned by the debtors?

A

It will not sold again. Written off or returned to creditor

154
Q

What happens to the debit note the debtors sends?

A

Requesting trade discount that has been omitted or when they may have been overcharged on their invoice

155
Q

What happens in the latter transaction with debtors allowance?

A

No cost price entry as there is no stock physically being returned to the business

156
Q

What is the journal used for returning goods for credit?

A

Debtors Allowance Journal

157
Q

How often is entries entered in the DAJ?

A

Daily basis

158
Q

How often is the DAJ drawn up?

A

Month. Totalled at the end of the month and posted to the general ledger

159
Q

What does the debtors allowance column refer to?

A

The selling price of goods being returned shown on each credit note

160
Q

What does the cost of sales column refer to?

A

Total cost price of goods being returned on credit note

161
Q

Why in the Debtors Allowance Journal is there no sundry account?

A

Only transactions recorded are credit returns and incorrect amounts charged or discounts omitted

162
Q

Does discount have cost of sales?

A

No

163
Q

Wherever it says replaced by cheque, what do you say?

A

Replace with EFT

Accounting (8 decks)

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