Archive about 'Bookkeeping to Trial Balance'

Types of Subsidiary Book -The Cash Payments Journal

The Cash Payment Journal This Journal records all CASH PAYMENTS. The sources of information required to write up this Journal are as follow: cheque stubs for all payments made by cheque bank statement for items such as bank charges, dishonored cheques and interest on bank overdraft A typical Cash Payment Journal format is as follows: [...]

Types of Subsidiary Book -The Purchase Journal

The Purchase Journal This Journal records all purchases on CREDIT. The book is written up from the actual invoices received from trade suppliers. Purchase Journal as follows: Date Invoice No Particulars Folio No Details($) Monthly Total($) 2007 Jan 1 72306 Supplier A PL 8 190.00 20 42315 Supplier B PL 11 150.00 31 42327 Supplier [...]

Types of Subsidiary Book -The Sales Journal

The Sales Journal This Journal records all sales on CREDIT. The book is written up from the duplicate of sales invoices. It contains only credit sales related to the goods originally bought for resale. Sales Journal as follows: Date Invoice No Particulars Folio No Details($) Monthly Total($) 2007 Jan 1 4230 Mr ABC SL 8 [...]

Type of Subsidiary Book – General Journals

Some of the advantages in using Journals are as follows: transactions which occur infrequently and adjustments necessary at the close of an accounting period require evidence as a basis of recording. Journal vouchers are used to support such transactions and by being signed by responsible officials, they constitute entries for the General Journal. It is [...]

Types Of Subsidiary Book-The Sales Journal

Accounting Test Question & Answer BK No 1 On Bookkeeping To Trial Balance

The below questions represent some accounting questions on recording of transactions. The following multiple-choice practice questions are extracted from Certified Accounting Technician (CAT) Scheme Paper 1 [ Refer Answers at the end of the questions ] Question 1 Hywel purchases goods on credit with a list price of $100. The supplier gives Hywel a [...]

Difference Between Carriage Inwards And Carriage Outwards In The Income Statement

Return Inwards: Goods already sold by the company were returned to the business by the customers sometimes later. Goods can be defective, not according to specification or damage. When goods are returned by customers, the company issue a credit note to the customer. Accounting Treatment: Debit: Return Inwards Account Credit: Customer’s Account [...]

Difference Between Returns Inwards And Returns Outwards

Carriage Inwards: The transport costs of goods received by a company. Accounting Treatment: Should be taken up in the Purchases figures as it is part of the cost of the goods being purchased. Carriage Outwards: The transport costs of company’s goods to its customers. Accounting Treatment: Should be taken up as expenses in the Income [...]

Types Of Discounts And Accounting Treatment For Discount Allowed and Discount Received

This article explains the difference between Trade and Cash discounts. Cash discount, which are shown as Discount Allowed and Discount Received with its accounting treatment. Trade Discount A manufacturer or trade normally issue a price list of their products at which the customers usually have to pay. The allowance given from the list price is [...]

Petty Cash And The Imprest Cash Float System

PETTY CASH AND THE IMPREST CASH FLOAT SYSTEM Petty Cash · Many business normally keeps a small amount of money to meet some small cash disbursements like payment of postage, medical claims, staff traveling claims. As the disbursements are for petty item hence the name petty cash Petty Cash Imprest System Salient features: · Under [...]