Mixed revision Flashcards
What is the statement of account?
-details transactions during the period and shows how much is owed by the customer
What is remittance advice note?
-sent to us by the customer along with payment
-details the amounts being paid
What should we compare the supplier statement with?
-the payables ledger account for that supplier
What is the supplier statement of account?
-lists out all the transactions for the period
-includes invoices, credit notes and discounts
-provides a total and that date the payment is due
Do we Dr or Cr a credit note given to us?
Dr
Do we Dr or Cr invoices we have vouched?
Cr
Do we Dr o Cr our discounts that we are receiving?
Dr
What are the steps to reconciling the supplier statement with the payables ledger?
take balance on the SSoA
1. deduct any invoices sent to us but haven’t been recorded in our payables ledger (we haven’t got the goods/invoice)
2. deduct any payments we have made that aren’t yet shown in the supplier S
take the brought down balance on payables ledger
1. add any invoices that we’ve received from suppliers but haven’t processed yet (any we haven’t yet posted to the payables ledger)
What does a BACS remittance advice do?
-informs the supplier of how much will be paid into it’s bank
What is the purpose of a goods returned note?
-to inform various departments that goods have been returned to the supplier
What is the purpose of a goods received note?
-to inform various departments that goods have been received and the condition that they are in
What is the purpose of cheque requisition?
-to request the authorisation of a cheque when there is no invoice
What does the daybook consist of?
- sales daybook
- sales returns
- discounts allowed
- purchases daybook
- purchases returns
- discounts received
What is the double entry for the sales daybook?
Dr receivables
Cr VAT
Cr sales
What is the double entry for the sales returns daybook?
Cr receivables
Dr VAT
Dr sales returns
What is the double entry for discounts allowed daybook?
Cr receivables
Dr VAT
Dr discounts allowed
What is the double entry for the purchases daybook?
Cr payables
Dr VAT
Dr purchases
What is the double entry for purchases returns daybook?
Dr payables
Cr VAT
Cr purchases returns
What is the double entry for discounts received daybook?
Dr payables
Cr VAT
Cr discounts received
What are the double entries for the cash receipts book?
Dr cash
Dr bank
Cr receivables
Cr VAT
What is analysed for VAT in cash book?
-for cash sale receipts and payments
What are the double entries for the cash book payments?
Cr cash
Cr bank
Dr payables
Dr VAT
Dr purchases
How do you work out the cash and bank balances?
Receipts (Dr) - payments (Cr)
If the cash book is part of the double entry system, what are the double entries?
Dr VAT
Dr payables
Dr purchases
Dr bank charges
What are the double entries for the receipts side of the petty cash? (book of prime only)
Dr petty cash
Cr bank
What are the double entries for the payments side of the petty cash book? (book of prime only)
Cr petty cash
Dr VAT
Dr postage etc.
What is the balance c/d and b/d on the petty cash book?
-remaining money in the tin
What are the double entries if the cash book is book of prime entry and double entry?
Dr expense accounts
What are the key benefits of a digital bookkeeping system?
-time saving
-reduction of errors
-importing and exporting data
What are the drawbacks of a digital bookkeeping system?
-duplication of entries
-recurring entry changes
-closing balances incorrect
What is capital income?
-any income arising from the sale of a NCA
What is capital expenditure?
-purchase of a NCA
What is revenue income?
-income from the sale of goods and services
What is revenue expenditure?
-purchase of goods for re-sale and the day to day running expenses
