In one of the previous chapters, the cash account was treated and in the chapter, receipts and payments in cash only are involved. We have also to consider the entries required whenever cheques also are used as one of the means of payment. Even though the cash and bank accounts are ledger accounts and so …
Here, the double entry book-keeping requires two books for it to carry out operation effectively. Those books are the journal and the ledger. Journal is defined as a book that contains private records of events as they occur day in and day out A journal performs so many functions as thus: (i) It serves as …
In business transaction, there rare cases of sales returns. This happens when sales are made to a customer and the customer finds any defaults on that particular product he purchased, he has a right to return it back to the seller And when this occurs, the seller will then open up a return inwards book …
The returns outward book is a book that records all purchases returns. This is where a particular product is bought but later it was found out that the goods are not in order and so the purchaser decides to return the product back to the seller. Here, the records will be made in the purchases …
This is the book that records all credit purchases. It contains the following particulars such as the name of the person from whom the purchases was made, the type and quantity of goods purchased, the trade discount if any, the net amount of the credit purchases. Note that this book has the same format with …
This is a book where we record all credit sales. Here, It contains the following information: (i) the names of the person who received the goods (ii) The type and quantity of goods sold on credit (iii) The cost of goods sold on credit (iv) The trade discount (if any) (v) The net amount of …