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What a Trial Balance Does A Trial Balance lists the closing balances of all accounts in the general ledger. You place each balance in either the debit or credit column. After you add the columns, the totals should match.When these totals match, the ledger entries are arithmetically correct. After you finish the Trial Balance, you … Read More
Many businesses use a petty cash system to manage small business payments. These payments are too small for writing a cheque. For example: A staff member usually manages the petty cash float. This person is responsible for: Funding and Receipts Businesses top up petty cash from the cash book or bank. Sometimes, petty cash also … Read More
The Cash book is a book of prime entry which is initially used to record all money transactions and then transferred into the general ledger. All monies received or paid out will have an entry in the cash book and this will include monies paid in and out in cash or through the bank.In the … Read More
The company’s services or products are sold to its customers. These customershave to be set up on Sage in order to be able to allocate invoices, credit notes andtransactions against the customer.In order to set up customers, click on the ‘New’ button at the top of the Sales Ledger(Customer tab), and follow the wizard. Important! … Read More
Cash Sales These occur when a customer buys items or services and pays immediately, at thepoint of sale. These occur frequently as seen in high street stores, whereindividuals go into stores to buy items and pay immediately by cash, cheque, debitor credit card at the till and are issued a receipt printed by a till … Read More
Accounting Equation: ASSETS – LIABILITIES = CAPITAL QUESTION: Anushka began a sole trade business on 1 January 20X1. During the first month of trading, the following transactions took place: She started the business with £5,000 of cashShe took out a loan from the bank of £10,000She purchased a van for £12,000 cashShe purchased 100 units … Read More
WHAT IS A LIABILITY? Liabilities are things that are owed by the business which are the obligations or debts of the business. These could be classed as: · Non-Current liabilities · Current liabilities Non-Current liabilities are obligations that are owed by the business over a long period of time usually for longer than one year … Read More
WHAT IS AN ASSET? Assets are things that are owned by the business which are used to produce economic value to the business in meeting its debts and other commitments. These could be classed as: · Non-Current assets · Current assets Non-Current assets are things that are owned by … Read More
