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7 Cards in this Set
- Front
- Back
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What is the Nominal Ledger?
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ledger containing all the accounts neccessary to summarise transactions and prepare a balance sheet and income statement
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Define "Double Entry Bookkeeping"
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Most commonly used system of bookkeeping based on the principle that every financial transaction results in the simultaneous giving & receiving of value, and is therefore recorded twice. Known as the dual aspect, or duality convention
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Balance sheet contains
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Assets, liabilities, Capital
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Income statement contains
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expenses, revenue
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Debit entries include increase in (2)
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Assets
Expenses |
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Credit entries include an increase in (3)
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Liabilities
Capital Revenue |
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When to use Purchases and Sales Account?
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Only for items the company trades, not for non-current assets or stationary etc.., as they have their own accounts
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