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Aat Bookkeeping > Transactions > Flashcards

Flashcards in Transactions Deck (16)
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1
Q

Book of prime entry

A

The records in which transactions are initially recorded

2
Q

Cash book

A

The book of prime entry used to record money received and paid out by the business

3
Q

Credit

A

The credit side of a ledger account is the right hand side

4
Q

Debit

A

The debut side of a ledger account is the left hand side

5
Q

Double entry bookkeeping

A

A system of accounting where two effects of eachtransactions are recorded

6
Q

Drawings

A

The money or goods that the owner takes out of the business

7
Q

Dual effect

A

Every transaction a business undertakes has two effects on the business (a befit and a credit)

8
Q

General ledger

A

A collection of ledger accounts, where the double entry takes place for all the transactions of the business

9
Q

Journal

A

The book of prime entry for non-standard transactions

10
Q

Ledger accounts (or t accounts)

A

The accounts in which each transaction is recorded

11
Q

Purchases

A

Purchases either of materials that are to be made into goods for resale or purchases of goods that are to be resold to customers

12
Q

Purchases day book

A

This day book lists the invoices received from credit suppliers

13
Q

Sales day book

A

This book lists the sales invoices sent out by the business to credit customers

14
Q

Sales tax

A

A consumer tax imposed by the government on the sale of certain goods and services

15
Q

Trial balance

A

A list of the closing balances on each of the general ledger accounts with one column for all the items with debit balances and another column for all the items with credit balances; total debits should equal total credits

16
Q

VAT control account

A

Summarised totals of all VAT transactions are posted to this account; on a regular basis, it is balanced off and the amount due to or recoverable from the tax authorities is calculated.