Module 12 Flashcards
1
Q
How can we calculate what each individual customer owes us?
A
Aged debtors ledger
2
Q
What is the journal entry when an entity issues a credit note to a customer?
A
Dr P&L -sales
DR VAT account
Cr Trade debtors
3
Q
What is the journal entry when an entity receives a credit note from a supplier?
A
Dr Trade creditors
Cr VAT account
Cr P&L Purchases
4
Q
Why might there be differences between the balance in the nominal ledger account and added ledger account?
A
- manual journal entries
- suspense account
5
Q
Why would a manual journal entry be posted to a suspense account?
A
unsure how to record transaction
