accounting - N5

• Equity - CR
• Bank - DR
• CCE - DR
• wages - DR
• sales - CR
• purchases - DR
• purchase returns - CR
• sale returns - DR
• trade receivables - DR
• Trade payables - CR
• general expenses - DR
• inventory - DR
• Motor van - DR
• electricity - DR
• premises - DR
• loan - CR
• drawings - DR
• carriage in / out - DR
• interest on loan - DR
• insurance - DR
• bank charges - DR
• opening inventory - DR
• discount received - CR
• bank overdraft -CR
• discount allowed - DR
• order form - used to inform the supplier what the customer wants to buy
• invoice - sent to the customers with goods to inform them what’s been delivered and what they owe the supplier
• trade discount - % off the value of goods to encourage customers to be loyal
• cash discount - % off the cost to encourage the customers to pay quicker
• main invoice - shows how much the customer owes
• illustrative invoice - used to show how much the customer will have to pay after discounts
• credit note - when a customer returns goods to the supplier they will be sent a credit note to show that there value of goods returned has been taken off their account. no money has been exchanged.
• over draft - so a business can use more money then they can have
• ledgers - a book containing the accounts of a business, showing the financial transactions of the business over a period of time
• assets - the resources owned by a business
• liability - items owed by a business
• real accounts - accounts of assets
• personal accounts - accounts of all people we deal with