Recording Actual Income and Expenditure (Junior Cert Business Studies): Flashcards
📚Flashcards
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12 cards from this deck
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Practise the cards
12 cards from this deck
What does balancing an account show?
What does balancing an account show?
How much money remains after recording all income and spending
Debit (Dr) side: location and what it records
Debit (Dr) side: location and what it records
Left side of account; records money coming in (income)
Credit (Cr) side: location and what it records
Credit (Cr) side: location and what it records
Right side of account; records money going out (expenditure)
Debit in simple terms (cash account)
Debit in simple terms (cash account)
Money in your pocket
Credit in simple terms (cash account)
Credit in simple terms (cash account)
Money out of your pocket
Formula to calculate the balance
Formula to calculate the balance
Higher total minus lower total
Which total goes at bottom of both columns?
Which total goes at bottom of both columns?
The higher of the two totals
Where is balance c/d positioned?
Where is balance c/d positioned?
On lower total side, above the total line
Where is balance b/d positioned?
Where is balance b/d positioned?
On opposite side, below the total line
Balance c/d with money left over goes on which side?
Balance c/d with money left over goes on which side?
Credit side
For cash accounts, balance b/d is always on which side?
For cash accounts, balance b/d is always on which side?
Debit side
Relationship between balance c/d and b/d amounts
Relationship between balance c/d and b/d amounts
Same balance amount appears as both c/d and b/d