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1.) TRANSACTION- this refers to any peice of business, e.g. bought goods, and payed by check, sold goods on credit, bought a computer, payed an electricity bill and payed by check, payed wadges to employees.
to be able to record information into the accounting system, wach transaction must have, a date, give details of wat has happened and also a monetary value.
.) ACCOUNT- in order to keeep a record...... a number of accounts are used. these accounts are keptin wat is known as the ledger.
in thwe computerized system the ledger is devide up so dat accounts of a similer nature are kept together e.g. all customers are kept together, all supliers are kepet together and all general records are kept together.
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.) CUSTOMER- this is a person to whom goods have been sold on credit i.e we have let them have the goods but they have not payed for them yet.customers can also be refered to as debtors.
4.) SUPLIER- this is a person from whom goods have been bought on credit i.e we have recived the goods but we have not payed for them yet. supliers can also be refered to as creditors.
5.) fixed assets. these are thing which have been bought for use in the business and not for selling to customers. they are expensive itemsthat will hope will last for serveril years e.g equipment, machineery, computers, furniture and fittings.
6. ) invoice. an invoice is a document sent by the seller to the buyer when involved with credit TRANSACTION
7 invoices recived. these are the invoiced the business wil recive when it buys goods on credit ie the business recives goods and pays for them later
INVOICES ISSUED
THESE ARE INVOICES THAT THE BUSINESS PREPERS AND SENDS OUT WHEN GOODS HAVE BEEN SOLD ON CREDIT IE WHEN CUSTOMERS HAVE GOODS NOW BUT PAY FOR THEM AT A L8ER DATE
credit note this is a doc used in accounting when goods are returned
credit note recived these will be used when goods which we have prev bought on credit are returned to the suplier
these will be used when goods that we have prev. sold on credit are returned to us by a customer.
cash received sheet- when money in the for of cash or cheques is recived by the business e.g. from customers it will be recorded on a sheet such as this. in addidition each recepit will be given a ref. number.
CASH PAYMENT- when money in the form of cash or cheques is paid out by the business e.g to supliers or for expences such as weadges, electric. the date the nameadn the ammount needs to be noted. in addidition each payment will be givena ref number.
the book keeping system- the Sage computerised account system follows the rules of the double entry book keeping system. using this system two accounts are required uin order to record each business.
e.g- september 18 sold goods on credit to joe bloggs £50
in order to record this information we need an account for joe bloogs (a customer/debtor) and also an account to record the sales.
the advantage of the computerised system is that when one entry has been made the computer automatically updates the other. this reduces the ammount of time required for financial transaction
the ledger- this is the name that is used to manually record financial trainsaction. it can be devide into different sections i.e all customers kept together all supliers kept together all cash and bank kept together e.t.c. the sage program uses a simmilar method and the main sections are-
customers
supliers
bank
nominal
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