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What is a sales invoice?

Produced by the business and sent to the customer.

1

What is a purchase invoice?

Sent to us by our supplier when we make a purchase.

2

What is a credit note?

Issued when making a return. Contains information on what the return is and it's value.

3

What is a cheque book counterfoil?

The part which is retained in the cheque book. Contains details on what was written on the cheque.

4

What is a bank statement?

A record from the bank detailing what has been payed in and taken out of your account. Opposite from what's in your ledgers because it's from the banks point of view.

5

What are cash receipts and till rolls?

A source document for money taken from customers.

6

What are direct debits?

Where you grant permission for a creditor to have a payment made to them in order to settle a debt.

7

What are standing orders?

Set buys to transfer money from our account into another one on a set day( e.g the 1st of every month)

8

What are bank charges and interest?

Where the bank charges the business for the maintenance of their accounts and interest on any overdrawn balances.

9

What are credit transfers?

Where money has been paid direct into the bank account of the business by a third party.

10

What is BACS?

Bankers Automated Clearing Service
A computerised payment transfer system. Used to pay wages, salaries etc.

11

What is the sales day book?

A list of all credit sales transactions.

12

What is the sales returns day book?

A list of all credit notes issued to customers.

13

What is a purchase day book?

A list of all supplier invoices received from credit transactions.

14

What is a purchases returns day book?

A list of all credit notes received from suppliers.

15

What does a cash book do?

Records all cask and bank transactions together with the details of discount allowed and discount received.

16

What is discount received?

The discount taken when the business pays it's suppliers early.

17

What is discount allowed?

The discount allowed to a customer for early settlement of a sales invoice.

18

What is the general journal?

A book of original entry(a subsidiary book)

19

What is a general journal used for?

Correction of errors
Transferring amount from one general ledger to another
Processing the entry of depreciation
Purchase or sale of non-current assets