Book Keeping and Keyboarding Review Flashcards

Book Keeping Fundamentals

• Definition: Bookkeeping is the systematic and accurate process of recording all business transactions, such as buying and selling goods or receiving and paying money.
• Importance:
  • Determines profit or loss.
  • Tracks all money received and spent.
  • Prevents confusion and loss of information.
  • Assists in better decision making.
  • Provides information on the financial position of the business.
• Business Records: Written documents detailing activities carried out by a business to help owners track financial activities.

Source Documents and Special Journals

• Source Documents: Original documents providing evidence of transactions including the date, amount, items, and names of parties.
  • Receipt: Proof of payment issued by a seller.
  • Invoice: Details of goods sold and amount owed.
  • Credit Note: Issued when goods are returned to credit a customer's account.
  • Debit Note: Issued to inform a customer that their account has been debited.
  • Cheque: A written order to a bank to pay a specific sum.
    • Crossed Cheque: Marked with two parallel lines; must be paid into a bank account.
    • Open Cheque: Can be cashed directly over a bank counter.
• Special Journals: Books used to separate specific types of transactions:
  • Sales Journal: Records credit sales only.
  • Purchases Journal: Records credit purchases only.
  • Cash Receipts Journal: Records all money received (cash sales, income, debtor payments).
  • Cash Payments Journal: Records all money paid out (salaries, rent, electricity).
• Journals as Books of Original Entry: Transactions are recorded in journals first in chronological order before being posted to second books.

Double Entry Book-keeping

• Principle: For every debit entry, there must be a corresponding credit entry. Every transaction affects at least two accounts.
• Account Types and Treatment:
  • Assets (money, furniture, buildings, stock): Increase = Debit; Decrease = Credit.
  • Liabilities (loans, creditors, bank overdraft): Increase = Credit; Decrease = Debit.
  • Expenses (rent, salaries, transport): Increase = Debit; Decrease = Credit.
• Ledgers: Permanent books containing all accounts in T-form.
  • Personal Accounts: Individuals or firms; debit the receiver, credit the giver.
  • Real Accounts: Assets; debit what comes in, credit what goes out.
  • Nominal Accounts: Expenses, losses, and income; debit all expenses/losses, credit all incomes/gains.

Keyboarding as a Communication Tool

• Definition: Using a keyboard to input data accurately and efficiently into electronic devices.
• Importance: Facilitates fast communication, improves writing accuracy, and is essential for employment and digital literacy.
• Posture:
  • Sit upright with a straight back and feet flat on the floor.
  • Keyboard placed directly in front; elbows bent at $90$ degrees.
  • Wrists straight and slightly raised.
  • Monitor at eye level to avoid neck strain.
• Typewriter Types: Manual (hand-operated), Electric (uses electricity), and Electronic (features memory and display).
• Computer Keyboards: Input devices used for typing, emails, and commands. Both typewriters and computer keyboards share the QWERTY layout.
• Keyboard Divisions:
  • Alphabet ($A$-$Z$), Numbers ($0$-$9$), Function ($F1$-$F12$).
  • Service Keys (Enter, Backspace, Delete, Tab).
  • Control Keys (Ctrl, Alt, Shift).
  • Navigation Keys (Arrows, Home, End).

Care of Computer and Practice

• Maintenance Tips: Keep equipment dust-free, avoid food/liquids near hardware, use proper shutdown procedures, and update antivirus software.
• Typing Techniques: Use the home row as the starting position.
  • Left Hand: $A$, $S$, $D$, $F$.
  • Right Hand: $J$, $K$, $L$, $;$.
  • Thumbs: Rest on the space bar.
• Common Paper Sizes:
  • $A4$: $210 \times 297\,mm$ (most common).
  • Letter size: $8.5" \times 11"$.

Questions & Discussion

• Question: What helps a business owner know how much money is coming in and going out?
• Response: Bookkeeping helps the business owner know how much money is coming in and out.
• Question: What are business records?
• Response: Business records are written details of business activities.
• Question: What is an example of bookkeeping?
• Response: Recording daily sales in a shop.
• Question: What is a receipt used for?
• Response: A receipt is issued as proof that payment has been made.
• Question: What is a document showing goods sold and amount owed called?
• Response: An invoice.
• Question: What are special journals used for?
• Response: They are used to record specific types of business transactions.
• Question: How is a journal defined?
• Response: A journal is a book of original entry.
• Question: Which journal records credit sales?
• Response: The sales journal.
• Question: What is the purpose of keyboarding?
• Response: A keyboard is used to type accurately and efficiently.
• Question: How does keyboarding help productivity?
• Response: It helps improve speed and accuracy while saving time.
• Question: Where should the keyboard be placed?
• Response: Directly in front of you.
• Question: How should your feet be positioned while typing?
• Response: Feet should be flat on the floor.
• Question: List similarities between a typewriter and computer keyboard.
• Response: Both are used for typing, both are input devices, both have similar key arrangements (QWERTY), both use letters, numbers, and symbols, and both have spacebars and shift keys.
• Question: What is a common way to care for a computer?
• Response: Keep your computer clean and dust-free.
• Question: Where should computers be placed?
• Response: In well-ventilated and cool areas.
• Question: What is the most common paper size for typing?
• Response: $A4$.