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The double entry system of book-keeping Questions and Answers 2024
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The double entry system of book-keeping
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The double entry system of book-keeping
Double entry system of book-keeping - answer Double-entry bookkeeping is the
concept that every accounting transaction impacts a company's finances in two ways. ...
Double-entry bookkeeping says each accounting transaction has two sides. The general
ledger is a record of the two sides of the transaction—a debit and a credit.
Processing accounting data using the double entry system - answer The double-entry
system of accounting or bookkeeping means that for every business transaction,
amounts must be recorded in a minimum of two accounts. The double-entry system
also requires that for all transactions, the amounts entered as debits must be equal to
the amounts entered as credits.
Double entry records for statement of financial postion accounts - answer Every
transaction increases or decreases the value of assets, liabilities or capital in accounts
concerned with the statement of financial position.
Preparing ledger accounts - answerAn accounting ledger is an account or record used
to store bookkeeping entries for balance-sheet and income-statement transactions. ...
Balance sheet ledgers include asset ledgers such as cash or accounts receivable.
Income statement ledgers include ledgers such as revenue and expenses.
Posting transactions to the ledger accounts - answerWhen making entries, it is
important to write the date and the details along with the amount. The entry is not
complete if any of this is missing. The detail is the name of the other account involved in
the transaction and is mentioned do that a cross-reference can be made.
Double entry records for expenses and income - answerDebit all expenses and credit all
income.
Accounts linked to inventory - answerInventory is the array of finished goods or goods
used in production held by a company. Inventory is classified as a current asset on a
company's balance sheet, and it serves as a buffer between manufacturing and order
fulfillment.
Purchases account - answerA temporary account used in the periodic inventory system
to record the purchases of merchandise for resale. Net purchases is the amount of
purchases minus purchases returns, purchases allowances, and purchases discounts.
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