6.1 - The Journal
True or False? The debit accounts are indented in the Particulars column.
False.
What is a Source Document?
A business paper that shows the nature of transaction and provides all of the information needed.
What does HST stand for?
Harmonized Sales Taxes
What is the first entry of the journal called?
The Opening Entry.
What is the entry for a POS Summary
Debit Bank
Credit Sales
How much percent is GST?
GST is 5%.
What is the journal also known as?
The Book of Original Entry.
What is a remittance advice?
A form accompanying the cheque explaining the payment
Why does a business have a strong incentive to record HST paid?
They get refunded for the HST they paid on purchases and reduce the tax they owe.
True or False? The days in the journal must be repeated no matter how many transactions happen in any given day.
True.
Why are most source documents numbered?
To ensure that no slips are lost, that none are used without being recorded, and that no false ones are made out. It is also used for easy reference
What is the entry to remit ?
HST Payable - $1500
HST Recoverable - $1875
Debit : HST Payable - $1500
Debit : Bank - $375
Credit : HST Recoverable - $1875
Describe two things that the journal would provide other than a daily list of transactions.
Referencing, makes work organized for the clerk, makes everything neat.
Why is it important to meditate?
Because you gotta have energy flowing in your body.
What is another name for PST (Provincial Sales Tax)?
Another name is RST (Retail Sales Tax)