Workshop 2 Flashcards
When are accounts drawn up?
Accounting systems for a business should ensure all transactions are recorded how?(3)
What must be recorded?(3)
At the end of each accounting period
Orderly, efficiently and for that business
Amount,date and description
DUAL ENTITY CONCEPT
From which point of view should accounts be viewed?
What concept are the rules for recording transactions based on?
For the following will an amount in debit be an increase or a decrease: capital, assets, liabilities?
What are ledgers?
The business
Dual aspect concept
Decrease, increase, decrease
Books
HOW TO BALANCE OFF
Describe how to balance off (6)
Leave blank line and draw level total boxes at the end of each side
Add up debit side
Add up credit side
Whichever is more put in total box on each side
Enter difference between sides as closing balance to be carried down
Balance is brought down on opposite side below total box
Trial Balance
For every debit what is made?
As one side of the ledger accounts increases what happens to the other?
What does the difference between the sides represent?
How is accuracy checked before sfp is drawn up?
Credit
Decreases
The value of the accounts at that time
Drawn up with different control
