3. Double Entry Flashcards
(7 cards)
1
Q
What is drawing?
A
Price or good taken out of business by owners for their personal use
- Capital (Profit - Drawings)
2
Q
Structure of income statement
A
Direct expense
Cost of sales
GROSS PROFIT
Indirect expenses
OPERATING PROFIT
Any other
NET PROFIT
3
Q
What is the abbrev for debit and what are they?
A
DEAD
Debit
Expenses
Assets
Drawing
4
Q
What is the abbrev for credit and what are they?
A
CLIC
Credit
Liabilities
Income
Capital
5
Q
What is debit?
A
Cash recieved
Left
6
Q
What is credit?
A
Payment made by the business
7
Q
How to use double entry and Ledge account
A
- Record using double entry
- Visualise with ledge account, balence at the end of period
