Recording Cash Transactions Flashcards
What is the only real difference between cash invoice and credit invoice?
Cash invoice must indicate the customer paid for the goods at point of sale.
What is a cash slip?
An abridged tax invoice that may be used for sales not exceeding R5000
When should a cash receipt be issued?
When no VAT should be charged.
What does a petty cash voucher record?
Payments made out of the petty cash box.
What is a journal voucher?
An internal source document from which transactions are recorded in the GJ
What is recorded in the CRJ?
Any transactions that cause the balance of the current bank to to increase.
What is recorded in the CPJ?
Any transactions that cause the balance of the current bank account to decrease.
What is recorded in the PCJ?
Purchases from the petty cash box.
What is recorded in the CJ
Credit purchases of any product or service.
What is recorded in the CAJ?
Returns / rebates with regard to transactions previously entered into the CJ.
What is recorded in the DJ?
Credit sales of trading inventory only.
What is recorded in the DAJ?
Returns / rebates with regard to transactions previously entered into the DJ.
What is recorded in the GJ?
Sundry transactions that cannot be recorded in any of the above seven journals?
What is a book of prime entry?
A book onto which source documents are recorded / summarised.
What are the components of the cashbook?
The CRJ and CPJ.
What is a cash transaction?
A transaction that is settled at the point of sale.
What is the analysis of receipts column?
The column where cash amounts that pass through the register are entered into so that the bank column can accurately reflect the account by the deposit slips.
What is in a journal’s header?
Journal’s name, applicable month and journal reference number
What is in the GL heading?
General ledger of (business name)
Where are the references for each account located in the GL?
Centred above the folio column.
How does balancing an account work if there is only one posting?
No balancing is necessary since the total is plain to see.
Hoe does balancing an account work if there are multiple postings one only one side?
The side with the postings can simply be totalled.
How does balancing an account work if there are multiple entries on both sides?
The expected greatest side is summed first. This total is then transposed to the other side.
The balance carried down is then calculated by means of calculating the difference between the totals on this side. This total is then brought down to the original side of the account and used as the opening balance for the first day of the month.
What accounts will always have a debit balance?
Assets, expenses and the drawings accounts
What accounts will always have a credit balance?
Liabilities, income and capital accounts.
What is a trial balance?
An index of accounts used to reflect the debit or credit balance for every account.
How is the trial balance divided?
Statement of financial position section (i.e., all asset, liability and proprietary account balances).
Nominal accounts section.
