Accounting U2. Word Scramble
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| 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 |
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