Trading Business General Ledger part 1

All activities involving monetary value that take place between the business and other enterprises (people) must at some point be recorded in the books of the enterprise.

• Transaction

• Documents

• Journals

• General Ledger

• Trail Balance

Proof must be given that these transactions have already taken place. This includes a receipt, cheque, deposit slip, etc.

(a)  

A business will collect all the documents and sort it out in receipts and payments. A business will record all these transactions in.....

• Transaction

• Documents

• Journals

• General Ledger

• Trail Balance

All transactions must be recorded properly .Accounts must be balanced and a trial balance needs to be prepared.

• Income Statement

• Trail Balance

• Documents

• Transactions

• Financial Statement

For every debit entry there must be a matching credit entry in the ledger. This is know as (a)  

When a business received money from a client for service rendered- In which journal should the transaction be recorded?

• Cash Payments Journal

• No Journal Entry

• Cash Receipts Journal

When buying a building to do business in the form of cash- Which source document must be used to record the transaction?

(a)  

The owner rented part of the building to his sister to start a catering business. He receives the first month of rent-Which source document must be used to record the transaction?

(a)  

Mr. Fleho deposited money as capital contribution into the business bank account-In which journal should the transaction be recorded?

• No Journal Entry

• Cash Receipts Journal

• Cash Payments Journal

Which equation is the correct accounting equation?

• A= L-O

• A=OE+L

• L=A+OE

• A=L+E