The Cash Book Flashcards
1
Q
What does an overdrawn balance look like in the cash book?
A
A credit bal b/d for the bank balance
2
Q
What is a trade discount?
A
Discounts agreed to at the time of the transaction
3
Q
What is a trade discount?
A
Discounts agreed to at the time of the transaction
4
Q
Why are trade discounts not recorded in the double entry system?
A
They are included in the bank transfer
5
Q
What are cash discounts?
A
Discounts agrees after a transaction has been carried out.
6
Q
Why are cash discounts recorded in the double entry system?
A
The discount is applied after the transaction has concluded
