chaper 1 definitons 3+4 Flashcards
(23 cards)
what is meant by code
a code is a system of numbers, letters and symbols designed to be applied to a set of items, to give a brief accurate reference, which helps entry to the accounting records, collation and analysis
what are the 3 types of code
alphabetical
numerical
alphanumerical
what makes up numerical code
numerical codes consist of numbers. if ordering numerically it can be ascending or defending
what does alphabetical code consist of
alphabetical code consists of letters. if ordering alphabetically the order is in alphabetical order
what is alphanumerical codes
codes are a combination of alphabetic and numeric characters
what is product code
a unique reference given to each type of product of an organisation
what is supplier account code
unique reference given to each individual supplier of a organisation
what is customer account code
is a unique reference given to each individual customer of an organisation
what is ledger code
a unique reference given to different types of income, expenses, assets and liabilities. it may also be referred to as general ledger (GL) or nominal code
what do invoices need to be coded to show
product group/type for analysis of sales/purchases
customer/supplier account number
what is block code
allocate bands of numbers to particular categories
what issequence code
allocate a number, or a letter or a sequence to a simple list
what’s is the sales return day book
the sales return day book is a list of the credit notes that are to be processed for a given period (e.g. a week)
what is a sales day book
the sales day book is the list of invoices that are to be processed for a given period of time
what is the purchase day book
the purchase day book is a list of the purchases invoices that are to be processed for a given period of time (e.g. a week)
what is a purchase returns day book
the purchase returns day book is a list of the credit notes that have been received from suppliers for a given period of (e.g. a week)
what is the cash book
a cash book is a record of cash receipts and payments that can form part of the double-entry bookkeeping system as well as bring a book of prime entry
what is the analysed cash book
an analysed cash book is a cash book with additional columns for analysing principal sources and payments for cash into totes of income and expense
what is analysed cash book
an analysed cash book with additional columns for analysing principal source and payments for cash into toes of income and expenses
what is the discount allowed day book
the discounts allowed day book is used to record the discounts that have not been deducted at the point of the invoice being recorded in the sales day book but instead were offered on a conditional basis e.g. prompt payments discounts allowed to credit customers
what is the discount received day book
the discounts received day book is used to record the discounts that have not been deducted at the point of the invoice being recorded in the purchase day book but were offered on a conditional basis
what is the petty cash book
petty cash is the small ammount of cash that most business hold in order to make cash payments
what is the petty cash book
a petty cash book is one in which all petty or some small payments made through the petty cash fund are recorded systematically
