18672189
Description
| Question | Answer |
| What are the TWO rules of double entry? | In every business transaction one account is debited and another is credited with the amount of the transaction The order does not matter whether you insert the credit or debit first. Should use an 'in' first and 'out' last principal |
| What are 'T accounts'? | Used to record double entry transactions Where debits go on the left side and credits go on the right side |
| What are the '5 Particulars Double Entry' rules? | |
| What is the flow of documents sequence? | QPADIR*C*SR Quotation, Purchase Order, Advice Note, Delivery Note, Invoice, Returns note*, Credit note*, Statement of account, Remittance advice *Only used if there was a problem with the goods supplied |
| What is a quotation? | A formal document issued by a supplier to a customer, containing details of the goods/services required and the price of the good/service The price is fixed and not to be confused with an estimate |
| What is a purchase order? | A commercial document issued by a customer to a supplier, indicating types, quantities and agreed prices for products or services |
| What is an advice note? | A commercial document sent by a supplier to a customer to inform them that the purchase has been accepted and it also lets the customer know when the goods will be delivered or that the goods are on their way. Also, it usually gives details such as the quantity of goods and how they have been sent |
| What is a delivery note? | A commercial document that accompanies a goods shipment and lists details about the goods delivered which will explain the contents of the package. Such as the quantity and what the actual good is |
| What is an invoice? | A commercial document that itemises a transaction between a customer and supplier, specifying the terms of the sale and the price |
| What is a returns note? | A commercial document that a customer sends back to the supplier to inform them which goods they are returning and why they are being returned |
| What is a credit note? | A commercial document in the form of a receipt given to a customer by a supplier, stating that a certain amount has been credited to the customer’s account (usually after a good or service has been returned or after a customer has received a discount). |
| What is a statement of account? | A statement from the supplier to the customer at the end of the month to show what has been purchased that month |
| What is a remittance advice payment? | A document sent by a customer to a supplier to inform the supplier that their invoice has been paid |
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