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Service Firm a/c
Business Studies-Junior Cycle- Service Firm a/c
Term | Definition |
---|---|
Balance Brought Down | Placed on the bigger side of the account to show the difference between the two. |
Balance Carried Down | Placed on the smaller side of the account to balance it. It is then carried down to the bigger side. |
T-Account Total | The total of the biggest side. This is entered on both sides of the account. |
Balance | The difference between the two sides. |
Capital | When the owner invests money in the business. (Money in=Debit side) |
Drawings | When the owner withdraws money from the business for personal use.(Money out=Credit side) |
Credit Side | The right hand side of an account.Money out. |
Debit Side | The left hand side of an account.Money in. |
Analysed Cash Book | Records all the receipts and payments for a business. It splits into sections giving a breakdown of information. |
Overdraft (OD) | When the money in the account goes below zero. |
Service Firms | Businesses that do not trade goods. They provide a service. |
Profit | When there is more money coming in than going out. |
Opening Balance | The balance at the start of accounting period. |
Closing Balance | The balance at the end of the accounting period. |
OD | Overdraft-When the money in the account goes below zero. |
A/c | This is an abbreviation for "Account" |
Goods | This is something you can hold after purchase e.g Food |
A service | This is something you experience after purchase e.g Hairdresser |