Sources and Recording of Data

Question 1

What is double-entry Book-keeping?

Answer 1

Is the process of making debit entry and credit entry for each transaction.
- the day-to-day transactions are recorded using double entry system of book keeping.

Question 2

Define journal?

Answer 2

A journal is detailed account of all the financial transactions of a business.

Question 3

Define ledger?

Answer 3

Refers to a book that contains different accounts where records of the transactions relating to a specific account t is stored.
- Ledgers are used to record financial transactions.

Question 4

What are the rules for double-entry Book-keeping system?

Answer 4

• debit the receiver and credit the giver.
• debit what comes in and credit what goes out.
• debit expenses and credit incomes.

Question 4

Define Expenses?

Answer 4

Are day to day running coat of a business.

Question 5

Define incomes?

Answer 5

Are the total money earned by a business up to a certain date.

Question 6

Define invoice?

Answer 6

Is when a business sells goods on credit it will issue an invoice to the purchaser

Question 7

What’s a debit note?

Answer 7

Is issued by a credit customer to the seller.

Question 8

What are the reasons to send a debit note?

Answer 8

• To ask for a reduction in the invoice received
• Goods received ere faulty (damaged)
• the goods received were less then what was ordered.
• customer was charged with more money.

Question 9

Define what a credit note?

Answer 9

Issued by seller to a credit customer.