Classification of Trial balance Flashcards
(53 cards)
What is the account title for cash held by a business?
Cash in hand
This account is typically recorded in the debit column.
What account represents a business’s physical property?
Premises
This account is recorded in the debit column.
What do we call amounts owed to a business by its customers?
Trade Receivable
This account is recorded in the debit column.
What account represents amounts a business owes to suppliers?
Trade Payable
This account is recorded in the credit column.
What type of expense is incurred for transporting goods?
Transport Expenses
This account is recorded in the debit column.
What is the account for fees charged by banks for account maintenance?
Bank charges (Expense)
This account is recorded in the debit column.
What do we call the goods available for sale by a business?
Inventory
This account is recorded in the debit column.
What is the term for the cost associated with goods sold?
Cost of sales (Expense)
This account is recorded in the debit column.
What account represents revenue generated from sales?
Sales Revenue
This account is recorded in the credit column.
What term refers to the value of land and buildings owned by a business?
Property
This account is recorded in the debit column.
What account includes items such as desks and computers?
Fixtures and fittings
This account is recorded in the debit column.
What type of income is earned from lending money?
Interest income
This account is recorded in the credit column.
What is the term for expenses incurred for hiring services?
Commission expense
This account is recorded in the debit column.
What is the account for employee remuneration?
Salaries Expense
This account is recorded in the debit column.
What term refers to the withdrawals made by the owner for personal use?
Drawings
This account is recorded in the debit column.
What is the term for the owner’s investment in the business?
Capital
This account is recorded in the credit column.
What type of expense is related to advertising activities?
Advertising expense
This account is recorded in the debit column.
What type of income is received from insurance policies?
Insurance income
This account is recorded in the credit column.
What do we call loans that are not due for repayment within a year?
Long Term Borrowings
This account is recorded in the credit column.
What is the term for income received from renting property?
Rent income
This account is recorded in the credit column.
What is the term for a negative balance in a bank account?
Bank overdraft (Short term borrowings)
This account is recorded in the credit column.
What type of expense is incurred for utilities like water and electricity?
Utilities Expense
This account is recorded in the debit column.
What account represents the value of vehicles owned by a business?
Motor Vehicle
This account is recorded in the debit column.
What is the term for costs associated with transporting goods?
Freight expenses
This account is recorded in the debit column.
