| What are the books of prime entry? | - The Cash book (For non-credit transactions)
- The Purchase Day Book (for credit transactions)
- The Sales Day Book (for credit sales)
- The Petty Cash Book (for small cash transactions)
- The Journal (For unusual transactions) |
| What are the books of prime entry? | - The Cash book (For non-credit transactions)
- The Purchase Day Book (for credit transactions)
- The Sales Day Book (for credit sales)
- The Petty Cash Book (for small cash transactions)
- The Journal (For unusual transactions) |
| What are the books of prime entry? | - The Cash book (For non-credit transactions)
- The Purchase Day Book (for credit transactions)
- The Sales Day Book (for credit sales)
- The Petty Cash Book (for small cash transactions)
- The Journal (For unusual transactions) |
| What are the books of prime entry? | - The Cash book (For non-credit transactions)
- The Purchase Day Book (for credit transactions)
- The Sales Day Book (for credit sales)
- The Petty Cash Book (for small cash transactions)
- The Journal (For unusual transactions) |
| Assets - Liabilities = | Opening Capital + Profits - Drawings |
| Assets = | (Capital + Profit - Drawings) + Payables |
| Trader's Profit = | Closing capital + Drawings - Capital introduced - Opening Capital |
| Increase in Net Assets = | Profit + New Capital - Drawings |
| What is the Imprest System of petty cash? | A system petty cash where the previous week/months expense's worth of petty cash is topped up from the bank. This keeps the petty cash at a set balance, that is low enough for there not to be a great loss if there is any theft. |
| What is the Journal used for? | Recording unusual movements between accounts for any double entries which don't arise from the other books of prime entry. |
| In what order are transactions recorded? | Books of Prime Entry -> General Ledger |
| What types of transactions are recorded in the sales/purchases day books? | Credit Transactions |
| What are ledger accounts? | The individual accounts for each item on the chart of accounts. |
| On a T account, what transactions are recorded on the right side? | The Cr (Credit record) Entires |
| On a T account, what transactions are recorded on the left side? | The Dr (Debit record) Entries. |
| When closing the accounts, what should be done with an item which belongs in the SFP? | The T account should be balanced, closed, and left with the closing balance. |
| When closing the accounts, what should be done with an item which belongs in the SPL? | The T account should be balanced, closed, and moved to the SPL account.
If it is an income item, then Dr the T account and Cr the SPL account.
If it is an expense item, the Cr the T account and Dr the SPL account. |
| What new T account must be opened when closing the books? | The Statement of Profit or Loss account. |
| What are the books of prime entry? | - The Cash book (For non-credit transactions)
- The Purchase Day Book (for credit transactions)
- The Sales Day Book (for credit sales)
- The Petty Cash Book (for small cash transactions)
- The Journal (For unusual transactions) |
| What are the basic steps in the accounting cycle? | 1) Recording transactions in the T accounts using double entry.
2)Balancing and closing the ledger accounts.
3)Preparing the Trial Balance
4)Closing off the accounts and producing th financial statements. |
| What is a Liability? | 'A present obligation of the entity to transfer economic resource as a result of past events.
An obligation is a duty of responsibility that the entity has no practical ability to avoid.‘ |
| What is an Asset? | 'A present economic resource controlled by the entity as a result of past events. An economic
resource is a right that has the potential to produce economic benefits.‘ |
