п»їAQA AS Accounting

ACCN1: Revising notes

The accounting process:

1 . Resource documents: facts that a economic transaction happened. 2 . Working day books: they are used to record day to day deals. 3. Ledgers: these are T- accounts that are completed for all transactions. 5. Trial balance: must equilibrium or else a suspense to correct missing statistics. 5. Last accounts: Cash flow statement and balance sheet.

Supply documents:

Exactly what source papers?

Source files are proof that a economical transaction has taken place. Why do we need source documents?

To determine profitability

To movement of products such as products on hand purchased by suppliers. To complete the last accounts such as the income statement and "balance sheet". To calculate tax.

To compare the movement of cash over a period of time.

To complete day catalogs, ledgers and excreta….

Various kinds of source documents

Paying go counterfoil

Credit note

What source papers are used for what?

Invoice- It's a request for repayment

Till roll- Evidence of money sales

Having to pay slip counterfoil- Lodged cash in bank

Receipt- Paying an enterprise expense with cash or requesting a repair person to finish job. Credit note- A refund supply document

Check counter foil- Paid a cost via check

Bank statement- Paid organization expense just like rent by means of direct charge or position order. Ledgers:

T accounts:

Dual feature: For every credit there is a debit.


A Direct Debit is definitely when a variable amount of money is definitely taken from your money. The consideration holder provides authorisation towards the bank just for this transaction to take place. A Standing Order is when a set amount of money can be taken from your bank account when the account holder offers authorisation to the bank just for this transaction. A cost accrued/ due is an exceptional debt that needs to be paid towards the end of the economical year. It is going to increase the expense for 12 months and it reduces the profit for 12 months. It is also a present liability inside the balance sheet. An expense prepaid is an expense that may be paid towards the start monetary year. It will eventually decrease the worth of the price and that increases the income for 12 months. It is also an up-to-date asset in the balance sheet Possessions are anything you own.

Current property are held for less than 12 months and the value of the current assets adjustments over a period of time. Non-current assets are owned or operated for more than 12 months and are subject to depreciation. They can be purchased to create profit on the long period of time. Auditor- somebody who checks the work of an accountant.

Depreciation may be the loss in value of any Non-current property, due to (WOOD) wear and tear, outdated, obsolescence, and deterioration. This is a not cash price. Discount:

Cash discount- A reduction in the amount owing to the supplier in substitution for paying legislation owed prior to scheduled deadline. Discount allowed- discount we offer to customers who reconcile their bills promptly. Discount received- price cut we receive from suppliers for deciding our bills promptly. Transact discount is a reduction in a general price recharged by suppliers due to volume buying. Images are when the owner in the business usually takes Inventory & goods out of your business for personal use. Dual aspect: For each debit we have a credit.

Heading concern – a successful organization that will foresee in the future. Liability is a thing that you owe.

Current the liability is a debt that must be paid back within one year. noncurrent the liability is a personal debt that will consider more than one yr to repay. Liquidity- the ability from the business to get into sufficient money resources to pay it is short- term liabilities. Prudence- better to undervalue the value of the money than overestimate the value of the money. Sales- the significance of goods or services delivered to clients. Cash sales- sale through which payment is made immediately in cash instead of put on credit rating. Source document- evidence that the financial purchase has...


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