Accounting as a System
Recording transactions in a systematic way
What is bookkeeping?
The double entry system affects how many accounts?
Two
Petty Cash Voucher is used for this journal
What is the source document used when entering in a Petty Cash Book?
This journal is used to record sales made on credit.
What is a sales journal?
Rent, wages, electricity fall under this class of account.
What is a nominal account?
Resources that a business owns.
What are assets?
When analysing a transaction, one account is debited. What happens to the other account?
It is credited
Source document used for credit transactions
What is an invoice?
Cash transactions where the amounts are small or insignificant are entered in this journalt.
What is a Petty Cash Book?
Land and furniture will be found in this ledger.
What is the general ledger?
When the owner of a business withdraws an asset for his personal use, this is referred to as
What is Drawings?
When a transaction affects both cash and bank, it is referred to as this.
What is a contra entry
This source document is given when cash is paid or received.
What is a receipt?
Sales made where payment is received by cash is recorded in this journal.
What is the Cash Book?
All debtors accounts are recorded in this ledger.
What is the sales ledger?
What is overdraft?
The balances from accounts are used to prepare this.
What is a trial balance?
Credit notes are issued when this happens
What is the source document used when goods are returned?
What is the Returns Inwards Journal?
This class of account included all debtors and creditors.
What is personal accounts?
What is Working Capital?
What date is given to a Balance carried down?
The last date of the month.
This part of the cheque remains after a cheque is issued, with the details of the cheque written down for reference.
What is a cheque stub?
The purchase of a fixed asset (non-current asset) on credit is recorded in this journal.
What is the general journal?
This ledger is used to record all accounts payables.
What is the purchases ledger?