Module 2 Recording financial information Flashcards Preview

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Flashcards in Module 2 Recording financial information Deck (3)
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1

What is the accounting equation?

Capital = Assets - liability

capital = capital introduced + (income - expenses) - drawings

CI + (I-E) - D = A - L

2

What is DEAL and CLIP

DEAL = DEBITS, CLIP = CREDITS

Drawings
Expenses
Assets
Losses

Capital
Liability
Income
Profit

3

Manual journal entries are required for period end adjustments, what are these?

Depreciation charges on PPE
Cost of sales and inventories
Bad debt write offs and allowances for doubtful debts
Accrued and prepaid expenses
Accrued and deferred income