The Journal Flashcards
What transactions are entered into the journal?
Non-regular transactions
What is the journal?
The journal is a book of prime entry-it is not a double entry account
What does the journal record give examples
Non-regular transactions
- opening entries for a new business
- Irrecoverable debts written off
- payroll transactions
- correction of errors
What payroll transactions required journal and accounting entries?
- Gross pay
- net pay
- income tax
- Employees and employers national insurance contributions
- employer and employee’s pension contribution
- voluntary deductions from employees pay
What is the journal?
It is the book of prime entry for non-regular transactions
Define opening entries
The Transactions to open the accounts of a new business
Define irrecoverable debt
A debt owing to a business which it considers will never be paid
Define payroll transactions
The accounting entries which record wage and salaries paid to employees
Define wages control account
The main account for payroll through which all transactions for payroll pass
Define gross pay
The amount of employees pay before any deductions
Define net pay
The amount paid to employees after deductions for income tax employees national insurance contributions employees pension fund contribution and voluntary deductions
Define HM revenue and customs
Receives amounts from payroll and respect of income tax employees and employers national insurance contributions
