Other Flashcards
1
Q
How is the balance calculated on the suspense account?
A
Add up debits and credits allocated to the account
2
Q
How can the expense account be removed/corrected?
A
Credit - suspense account
Debit - appropriate
3
Q
When does the current balance need updating?
A
Unrecorded transactions (bank charges)
Dishonored cheques/transactions rejected by bank
Errors
4
Q
When does the bank statement need updating?
A
Cheques paid out but not presented to bank by supplier
Cheques received but not cleared by bank
Errors
5
Q
Is it a debit or a credit when a business’ bank account is overdrawn?
A
Credit to the business
Debit to the bank
6
Q
For an unincorporated business, how is equity presented?
A
As capital
7
Q
What are the subheadings for capital?
A
B/f
capital invested
p/l
drawings
C/f
