EMS0921 Introduction to Debtors journal

Money that is given immediately for items purchased.

• Credit Sales

• Cash Sales

Items that are received immediately but the money will be paid at a later stage with interest

• Credit Sales

• Cash Sales

Was created to protect both the consumers and businesses and became fully operational in South Africa on 1 June 2007.

• B-BBEE

• Labour Law

• National Credit Act

The maximum amount the debtor can owe on a specific date.

• Payments terms

• Penalties

• Credit Limit

• Incentives or rewards

Charge the debtor interest for late payment on his/ her account.

• Payments terms

• Penalties

• Credit Limit

• Incentives or rewards

Sets out how much time the debtor has to pay his/her account.

• Payments terms

• Penalties

• Credit Limit

• Incentives or rewards

The discount given to the debtor if he/she pays earlier.

• Payments terms

• Penalties

• Credit Limit

• Incentives or rewards

Which of the following is not part of a invoice?

• Name and address of the buyer

• Details of the goods i.e. description, quantities, etc.

• The relationship between the buyer and seller.

• Terms of payment.

All transactions during which an enterprise SELLS ON CREDIT will be entered into the ___________.

• Cash Receipts Journal

• Cash Payments Journal

• Debtor Journal

• Creditors Journal

_________ is where we record transactions when debtors send goods back

• Creditors Allowance Journal

• Debtors Allowance Journal