Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Accounting U2.
Unit 2 - Credit Transactions
| Question | Answer |
|---|---|
| credit transaction | when g are exchanged but the cash relating to the stock is not exchanged until a later date, meaning the customer owes a debt to the seller |
| invoice | source doc that verifies the details of a credit transaction |
| why must terms be stated on an invoice? | important for customer to know specifically when payment must be made and is also put onto a source doc = reliable |
| sales invoice | a source doc that verifies a credit sale of stock |
| purchase invoice | a source doc that verifies a credit purchase of stock or other items |
| debtor | a customer who owes a debt to the business for g/s sold to them on credit |
| creditor | a supplier who is owed a debt by the business for g/s purchased from them on credit |
| credit purchase | a transaction that involves the acquisition of stock (or other goods) from a supplier who does not require payment until a later date |
| purchases journal | an accounting record which summarises al transactions involving the purchase of stock on credit |
| credit purchase effect on b.s | A - ^ (stock- 2000) L - ^ (creditors 2200) decrease (GST payable 200) |
| creditor formula: | creditors balacne at start (b.s) + credit purchases incl GST ____sub balance____ - payments to creditors (cash payments journal) = creditors balance at end |
| creditors record | a subsidiary accounting record which records each individual transactions with each individual creditor, and shows the balance ovine to that creditor at any point in time |
| creditors schedule | a listing of the name and balance of each creditor's record |
| credit Sales - affect on b.s | A-increase ( increase debtors 4246, decrease stock 1500)=2746 ______L-increase(GST payable 386) =386_____ O.E-increase(increase Sales 3860 and less COS 1500 = profit) = 2360 |
| debtors record | a subsidiary accounting record which details each individual transaction with each individual debtor, and shows the balance owed by that debtor at any point in time. |
| debtors schedule | a listing of the name and balanceof each debtor's record |
| pros of using subsidiary records | management of debtors/creditors:ensure invoices sent, debts collected, on time payments, _ detection of errors: checking balance calculated using formula against debtors/creditors and figure in b.s. - reliability _ease of reporting: only one figure inb.s |
Created by:
96
Popular Accounting sets