Chapter 22 Recording in DJ

A debtor is a (a)   asset.

A source document which lists goods bought with prices charged and serves as proof that the transaction between a seller and buyer has taken place.

• Receipt

• Credit Invoice

• EFT

• Cheque

What should not be included in an invoice?

• Name and address of the buyer.

• Total amount of the debt

• Relationship between buyer and seller

• Terms of payment.

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

(a)  

What is the purpose of the National Credit Act?

• Educate consumers on the responsibilities of borrowing

• Ensure that money that is borrowed or lent out can be paid back.

• Provide debt counselling

• All of the above

Money is given immediately for items purchased.

(a)  

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

(a)  

A summary account where we post the totals of all relevant journals, in order to calculate how much all debtors owe, in total, at the end of the month.

(a)  

A transaction of goods sold on credit is recorded in a journal called the _________.

• Creditors Journal

• Cash Receipt Journal

• Cash Payment Journal

• Debtors Journal

A list of the final balance of each debtor at the end of the month.

(a)