Accounting

Chapter 1 - 6 Excluding chapter 4

Book-keeping

Detailed recording of all financial transactions of a business to prevent oversight or corruption.

Double entry book-keeping (T-accounts)

Recording transactions by making debit and credit entries for each transaction.

Accounting

Utilizing book-keeping records to prepare financial statements and aid in decision-making.

Income statement

Calculation of the profit or loss earned by the business.

Statement of financial position

Shows a business's assets and liabilities on a specific date.

Capital

Total resources provided by the owner of the business.

Asset

Anything owned by the business.

Liability

Anything the business owes.

Accounting Equation

Assets = Capital/Owners’ Equity + Liabilities.

Trade payable

Amount owed by the business to credit suppliers of goods.

Trade receivable

Amount owed to the business by credit customers.

Return outwards

Goods purchased from the business but returned to the supplier due to faults or errors.

Return inwards

Goods returned by a customer to the business.

Trial balance

List of ledger account balances at a specific date to check accuracy.

Invoice

Document from a supplier showing details, quantities, and prices of goods supplied.

Trade Discount

Deduction in the price of goods based on the quantity purchased.

Cash Discount

Allowance given to a customer for settling an account within a specified time.

Debit Note

Document from a purchaser requesting a reduction in an invoice.

Credit Note

Document from a seller notifying a reduction in a previously issued invoice.

Statement of Account

Document summarizing credit transactions for a period, including balances, invoices, and payments.

Cheque

Written order to a bank to pay a specified sum to a named person or business.

Receipt

Written acknowledgment of money received, serving as proof of payment.