lec 2 sum

Question 1

what is doule entry bookeepoing

Answer 1

systematic method

recording transactions

in a general ledger

Question 2

ledger is divided into sections called

Answer 2

accoutns

Question 3

transactions are recorded in

Answer 3

accoutns

Question 4

each account is started on

Answer 4

a new page

Question 5

each transaction is entered how many times and influences how many accounts

Answer 5

2

Question 6

if an transaction is entered once in an account on a debit side what happens

Answer 6

entered into the credit side of another account

Question 7

if company pays for something immediatley it is an

Answer 7

expense

Question 8

when company doesnt pay for something immediatley it is a

Answer 8

liablity

Question 9

what are the 5 account classifications

Answer 9

Assets
Liability
Equity
- balance sheet

Income
Expenses
- profit and loss account

Question 10

debit side is not always an and credit side is not always an

Answer 10

increase

decrease

Question 11

1 side teh value of teh account will increase therfore on the other side the value

Answer 11

decreases

Question 12

whats the acronymn

Answer 12

all elephants
assets , expenses

like ice cream
liability , income , capital/equity

Question 13

what accounts does debit side increase

Answer 13

assets and expenses

Question 14

what account does credit side increase

Answer 14

liability , income , capital/expenses

Question 15

tax account si what type of account

Answer 15

expense

Question 16

tax accrual is what type of account

Answer 16

liablity

Question 17

when doing bookeeping/recording accoutns what are the two steps

Answer 17

identify main account

identify the settlement

Question 18

immediate settlement =

Answer 18

bank/cash account

Question 19

latter settlemtn

Answer 19

payable/creditor (L)

recievable/debtor (A)

Question 20

If company is paying back a liabiltiy what side will it go on

Answer 20

debit side as liablity s reducing

Question 21

if paid something on credit where do we put the new payment

Answer 21

on the opposite side to show its been paid

and on teh credit side of cash as asset of cash is decreasing

Question 22

if money is withdrawn by owner what is the effect

Answer 22

decrease in credit as capital is reducing

Question 23

fixtures and fitting are what type

Answer 23

asset

Question 24

purchases are

Answer 24

expense

Question 25

spendin to buy stationery si an

Answer 25

fixed asset

Question 26

expenses

Answer 26

Depreciation

discounts allowable

standard d2d expenss too

Question 27

liablities

Answer 27

accruals

deferred tax

Question 28

income

Answer 28

rev

interest

income from rent

Question 29

capital

Answer 29

retained earnings

drawings

stocks

Question 30

if debitor pays back money how do we record it

Answer 30

write the payback on teh opposite side as income increased - to show it has cancelled out

then record in the cash as debit side because asset (Cash) has increased

Question 31

if someone makes a sale but pays half by credit and half by cash how do we record this

Answer 31

sales - increase credit as income is increasing - split in half 300 by cash 300 by creditor
keep on the same side

Question 32

if paying someone back because theyve returned something how do we record this

Answer 32

debit revenue

credit cash

Question 33

we’re gonna assume paying someone back after a transaction is an

Answer 33

expense

but we will check