Creditors’ Reconciliation with the Creditors' Statement (Grade 12 NSC Matric Accounting): Flashcards
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Creditors' reconciliation definition
Creditors' reconciliation definition
Monthly comparison of ledger accounts with creditor statements
Balance when you owe creditor (your books)
Balance when you owe creditor (your books)
Credit balance
Balance when you owe creditor (their books)
Balance when you owe creditor (their books)
Debit balance
Payment in transit meaning
Payment in transit meaning
Payment sent but not yet received by creditor
Three types of recording errors
Three types of recording errors
Wrong amounts, wrong classification, omitted transactions
Settlement discount validity
Settlement discount validity
Only when payment made within specified credit terms period
First step in creditors' reconciliation
First step in creditors' reconciliation
Compare balances between ledger and creditor's statement
Credit terms period starts from
Credit terms period starts from
Invoice date, not receipt date
Are payments in transit errors?
Are payments in transit errors?
No, legitimate transactions that will clear in time
Reconciliation table purpose
Reconciliation table purpose
Show adjustments using +/- signs from one balance to another