Journals Flashcards
(163 cards)
1
Q
When cash purchases are made, what do we assume they are?
A
Via EFT
2
Q
What is the accounting rule?
A
That for every debit there is a credit.
3
Q
What is the debit entry in the bank for CRJ?
A
Total Receipts
4
Q
What is the credit entry in Bank for the CPJ?
A
Total Payments
5
Q
What must you underline in the Analysis of Receipts column?
A
Final daily entry
6
Q
Where must you put the name of the person or business you received money from / paid money?
A
Details/Name of Payee columns respectively.
7
Q
Where must you put the name of the General Ledger account?
A
Sundry account details column.
8
Q
Where must you enter transactions and what the money was for.
A
Bank column and into a corresponding column
9
Q
What proof of payment represents EFTs?
A
B/S - for any internet or cellphone banking payments
10
Q
What creates the selling price?
A
Cost price + profit mark-up
11
Q
What does cost price equal?
A
Cost price = selling price - profit
12
Q
What makes up the profit?
A
Profit = selling price - cost price
13
Q
What do we assume cost price is always?
A
Percentage out of 100
14
Q
What will the profit mark-up will always be given as?
A
Percentage out of 100
15
Q
Where do you put what you want in a fraction?
A
Numerator
16
Q
What is Want over Got?
A
Put what you want to find in the numerator place in the fraction
17
Q
Which one should be greater the selling price or cost price?
A
Selling price is greater
18
Q
Define Ben swims to Cairo
A
Used when selling
Bank, Sales, Trading stock, Cost of sales
19
Q
Who goes together in Ben Swims To Cairo?
A
Banks and sales
Trading stock and cost of sales
20
Q
When is trading stock credited?
A
When it decreases
21
Q
What does cost of sales refer to?
A
Original cost to the business of the trading stock that has just been sold to someone else
22
Q
What does DEAD mean?
A
Debit
Expenses - oe
Assets
Drawings
23
Q
What does CLIC refer to?
A
Credit
Income
Liabilities
Capital
24
Q
What is the source document for a cash sale?
A
Cash register roll (CRR)
25
When cash sales take place, what should you put in the details column?
Sales
26
What happens to the analysis column current income?
Now called Sales
27
What does sale refer to in the CRJ?
Selling price of items sold
28
What does cost of sales refer to in the CRJ?
Cost price of items sold
29
Where will the totals from the CRJ be posted?
General Ledger at the end of the month
30
What does direct deposit mean?
Directly to the bank - EFT (B/S)
31
Why should you not add the cost of sales to the amount?
Money spent not received
32
Every time you make more sales what do you have more of?
Cost of sales
33
Are you allowed to say EFT?
Never write EFT
34
What are cash sales recorded in?
Cash Receipt Journal
35
What are cash purchases of stock recorded in?
Cash Payments Journal
36
What what is the source document used to record a cash purchase of stock?
Bank statement
37
When purchases of stock take place, what should you put in the Name of Payee column?
The name of the business
38
Where should trading stock be put in in the CPJ?
Trading stock has been given an analysis column. If not the sundry column
39
Where will the totals from the CPJ be posted?
General Ledger at the end of the month
40
What is trading stock also known as?
Inventory, merchandise, stock and trading stock
41
If it says drew cash in the CPJ, what should you put in the name of payee?
Cash
42
How long is a journal valid for?
One month
43
At the end of each month, what happens to the journal?
The journal is totalled them posted to the general ledger
44
What forms T accounts?
A list of accounts
45
How many sections has the general ledger been divided into?
Two sections
46
Name the two sections of the general ledger
The balance sheet section and the nominal accounts section
47
What accounts of found in the balance sheet section?
Owners equity, fixed assets, current asset and liability
48
What account are found in the nominal account section?
Income and expenses
49
Is an item appears in the sundry accounts column of the journal where does it get posted?
It gets posted on the specific day it occurred
50
If a column has been totalled when will the total of the column get posted?
Last day of the month
51
When posting cash journals to the general ledger, what will the name of the corresponding accounts in the detail column be?
Bank
52
Why is cost of sales and exception? General ledger
Course of sales does not affect the bank. It is a record of the value of stock that has been sold
53
Is cost of sales credited or debited? gl
Debited to the cost of sales account with the details of trading stock
54
Is trading stock debited or credited? gl
Crediton to the trading stock account with details of cost of sales
55
What happens to cost of sales and trading stock in the general ledger?
The expense cost of sales has increased and the acid trading stock has decreased
56
How do you balance an account in the general ledger?
1. See which side is greater
2. Add up the individual entries on debit side
3. Put the same total on the credit side
4. Add amounts on credit side
5. Workout the difference - put on credit
^ in details said balance c/d
6. Take same amount and put it on debit side
^ balance b/d
57
When should you balance an account?
When there is a debit and credit side in an account
58
What happens if an account has only entries on one side?
Total it
59
How do you total accounts in the general ledger?
Draw a line under the last amount and add up the entries
60
Why should you not draw a line underneath the total in the general ledger?
It acts as an opening total for the next month
61
In the nominal accounts section where does sales go?
Credit side
62
In the nominal accounts section where does cost of sales go?
Debit side
63
In the nominal accounts section where does expenses go?
Debit side
64
How long does the general ledger run for?
The entire lifespan of the company
65
What does the general ledger contain?
Contains information from previous months
66
What are opening balances?
Balances or totals that are brought down at the beginning of each month
67
What day of the month are the opening balances brought down
First day of the month
68
What are opening balances details in balance sheet section?
Balance
69
What are opening balances details in nominal account
| section?
Total
70
To sell something what should you do?
Buy something
71
Why is sales an exception when recording cash sales in the accounting equation?
A sale transaction is actually a two-part transaction and therefore it has four accounts involved
72
Why is sales 82 part transaction?
Selling price and cost price
73
What are the four accounts involved in the sales transaction equation?
* sales
* bank
* cost of sales
* trading stock
74
What is the first part of the sales transaction in the accounting equation?
The selling price which includes sales and bank
75
What is the second part of the sales transaction in the accounting equation?
Cost price which includes cost of sales and trading stock
76
What is sales in the accounting equation?
Income and increases owners equity on the credit side
77
What is bank in the accounting equation?
An asset that increases on the debit side
78
What is cost of sales in the accounting equation?
An expense and increases owners equity on the debit side
79
What is trading stock in the accounting equation?
Acid and decreases on the credit side
80
Why is trading stock put on the credit side in the accounting equation?
The merchandise is being sold and therefore no longer on the shelves
81
What is equipment?
Asset
82
Trading stock decreases what else would decrease?
Cost of sales
83
When trading stock sells what increases?
Bank
84
What is income do to owners equity?
Increase
85
What does expenses do to owners equity?
Decreases
86
Why does cost of sales affect owners equity?
And expense and decreases
87
Where is the source document and journal recorded in the accounting equation?
The first two columns
88
Where is a + entered in the accounting equation?
In assets, owners equity or liability is to show the effect
89
What are the different types of source documents?
Receipt, cash register roll, bank statement
90
When does a receipt occur?
Owners contribution (may be B/S), tenant pays rent
91
When does a cash register roll occur?
Cash sales
92
When does a bank statement occur?
EFT is, debit or credit card, online payments
93
What is packing material?
Expense
94
When is Ben swims to Cairo used?
Cash sales
95
When is Dan swims to Cairo used?
Credit sales (invoice, debtors journal)
96
What is debtors control?
Asset
| Pay later or buy on credit
97
Is debtors control debited or credited?
An asset that is debited when increased
98
What can't most businesses survive without?
They can't survive by only selling their trading stock for cash
99
What is necessary for businesses to do with credit sales?
Necessary to allow their customers to buy from them on credit
100
A customer who a business sells on credit is known as?
Debtors
101
Who are debtors?
People who own the business money and are considered assets
102
What source document is used to record a credit sale?
A duplicate credit invoice
103
Who is the original credit invoice given to you?
The customer
104
Although the customer only needs to see the selling price how is the cost price shown?
Shown on the invoice in the form of a price code or barcode
105
What does the price code or barcode assist with?
The calculation of the cost of sales and with stock control
106
When a business uses a secret price code how many letters do they choose?
A word with 10 letters
107
What do the 10 letters of a price code represent?
A number from 0 to 9
108
Where is the barcode written?
On the invoice letters
109
What is a debtors journal used for?
Transactions where goods have been sold on credit
110
When we sell on credit what happens to our assets?
Assets increase because our debtors over us more
111
When debtors pay us back what happens to the assets?
Assets in the form of debtors control will decrease as our date is no longer owe us
112
What happens to the bank when the debtors pay back the money?
The bank or decrease therefore increasing assets.
113
When debtors pay back assets decrease but increase what does this mean?
There is a neutral affect on the assets
114
When the accounting equation involves debtors control how many accounts are involved?
Four accounts
115
What are the four accounts involved in credit transactions in the accounting equation?
* sales
* debtors control
* cost of sales
* trading stock
116
What is the first part of the accounts involved in the accounting equation when a credit transaction occurs?
Selling price which involves sales and debtors control
117
What is the second part of the accounts involved in the accounting equation when a credit transaction occurs?
Cost price which includes cost of sales and trading stock
118
What are sales in terms of a credit transaction in the accounting equation?
Income and increases owners equity on the credit side
119
What is debtors control in terms of a credit transaction in the accounting equation?
Asset that increases on the debit side
120
What is debtors control also known as?
Accounts receivable
121
What are cost of sales in terms of a credit transaction in the accounting equation?
Expense and increases owners equity on the debit side
122
What are trading stock in terms of a credit transaction in the accounting equation?
Acid and decreases on the credit side
123
What is the difference between a cash sale and a credit sale in the accounting equation?
In a cash sale bank increases whereas in a credit sale get his control increases
124
When our entries in the debtors journal made?
Daily basis
125
When is the debtors journal drawn up?
Join up for a month in total at the end of the month which is posted to the general ledger
126
Well transactions are recorded in the debtors ledger?
Individual debtors accounts
127
What is the heading for the debtors journal?
State the name of the business and the month
128
What is the folio number of the debtors journal?
Use any folio column of the general ledger
129
What is the number of the source document in a debtors journal?
Invoice 101
130
What is the day in the it is journal?
Date in which the transaction occurred
131
What is debtor in the debtors journal?
Whom the business sold goods
132
What is folio in the debtors journal?
Used for the debtors ledger as a reference to the individual debtors accounts
133
What is sales in the debtors journal?
Refers to the total selling price shown on each invoice, which is recorded in the journal each day
134
What is cost of sales in the debtors journal?
Refers to the total cost price of each invoice
135
Why is there no sundry accounts in the debtors journal?
Only transactions are recorded our credit sales
136
What is a CRJ used to record?
CRR, cash sales, sales, received
137
What is a CPJ used to record?
Paid, direct payment, EFT
138
What is a DJ used to record?
Credit, invoice, sold on account
139
When there is no specification, what should you assume?
Bought on credit
140
What happens when debtors are unhappy with the goods they have received?
Debtors will return the goods to the seller or ask for a refund on an overcharge
141
Why would debtors be unhappy with a good?
It may have been incorrect or they may have been overcharged as the discount was not deducted
142
What happens with a credit note in the debtors allowance?
A credit note will be issued by the seller to the data for an amount that will credit from the debtors account
143
What is the source document for debtors allowance?
A duplicate a credit note
144
When debtors return goods, what happens to the assets?
Assets decrease because our debtors owe us less
145
How many accounts are involved when debtors allowance takes place in the accounting equation?
Four accounts
146
What is the first part of the accounts involved in the accounting equation when a debtors allowance occurs?
Original selling price which includes debtors allowance and debtors control
147
What is the second part of the accounts involved in the accounting equation when a debtors allowance occurs?
Original cost prices which includes cost of sales and trading stock
148
What are the four accounts involved in debtors allowance in the accounting equation?
* debtors allowance
* debtors control
* cost of sales
* trading stock
149
What are debtors allowance in terms of a debtors allowance transaction in the accounting equation?
Expense and decreases OE on debit side
150
What are debtors control in terms of a debtors allowance transaction in the accounting equation?
Asset that decreases on credit side
151
What are cost of sales in terms of a debtors allowance transaction in the accounting equation?
Expense that is decreasing. Increasing OE on credit side
152
What are trading stock in terms of a debtors allowance transaction in the accounting equation?
Asset that increases on the debit side
153
What happens to the stock returned by the debtors?
It will not sold again. Written off or returned to creditor
154
What happens to the debit note the debtors sends?
Requesting trade discount that has been omitted or when they may have been overcharged on their invoice
155
What happens in the latter transaction with debtors allowance?
No cost price entry as there is no stock physically being returned to the business
156
What is the journal used for returning goods for credit?
Debtors Allowance Journal
157
How often is entries entered in the DAJ?
Daily basis
158
How often is the DAJ drawn up?
Month. Totalled at the end of the month and posted to the general ledger
159
What does the debtors allowance column refer to?
The selling price of goods being returned shown on each credit note
160
What does the cost of sales column refer to?
Total cost price of goods being returned on credit note
161
Why in the Debtors Allowance Journal is there no sundry account?
Only transactions recorded are credit returns and incorrect amounts charged or discounts omitted
162
Does discount have cost of sales?
No
163
Wherever it says replaced by cheque, what do you say?
Replace with EFT
