Flashcards
ACCN1
Cards in this deck (24)
- 1Credit Notea document sent to a customer showing allowance given by a supplier in respect of unsatisfactory goods
- 2Credit TransfersElectronically transferring money from one bank to another
- 3Direct Debitpayments made automatically from one bank to another, this is a variable amount set buy the person receiving the money
- 4Standing Ordera set amount of money automatically paid from one bank to another on a fixed date
- 5Cash ReceiptReceipts given to a customer as proof of purchase
- 6Till Rollspaper inside the till which produces a receipt for the customer and another copy for the shop
- 7Paying-in Slip Counterfoila form used for paying money into a bank account in the same bank
- 8Invoicesrecord of sale/purchases
- 9Cheque Counterfoilssmall part of a cheque which holds details of a transaction
- 10Partial Omission (Error Revealed by Trial Balance)omission of one part of the double entry
- 11Unequal Posting Error (Error Revealed by Trial Balance)recording two debits or two credits for one transaction
- 12Addition Error (Error Revealed by Trial Balance)Error in calculating balances
- 13Posting Error (Error Revealed by Trial Balance)errors in transferring the balances to the trial balance
- 14Error of Omissiona transaction has been completely missed out
- 15Error of CommissionRight type of account but wrong persons
- 16Error of Principlewrong type of account all together
- 17Compensating Error (Error not revealed but trial balance)Two errors of separate transactions randomly cancel each other out
- 18Error of Original Entry (Error not revealed but trial balance)Original figure entered is incorrect
- 19Complete Reversal of Entry (Error not revealed but trial balance)Debit and Credit entries the wrong way around
- 20Reasons for Trial Balance1. Its used to complete the final accounts
2.Checks that accounts have been balanced off correctly
3.Its a way or checking that all financial transactions have a debit and credit entry - 21Reasons for a Bank Reconciliation1. Enables the cashbook to be corrected for bank entries
2.Enables out of date cheques to be cancelled
3.Enables the Bank Statement to be corrected by informing the bank
4. Acts as a deterrent to fraud as the Bank Statement is an independent source document - 22Reasons for a Suspense AccountIt allows you to deal with the errors found by a trial balance
- 23Reasons for a control account1. A quicker way to find out how much a business is owed.
2. Preventing fraud-makes it more difficult to write off debt
3. Location of errors
4.Preparation of final accounts - 24Limitations of Control AccountsDoes not find: Error of omission
Error of commission
Error of original entry
Compensating error
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- A-Levels Accounting Flashcards on ACCN1, created by amierosepickering on 11/05/2013.
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- amierosepickering
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