Tag: elements of accounts

The cost of installation and maintenance is relatively high because the high cost is to be paid to the vendor for customisation. the customisation includes modification and addition to the software content provisions for the specified number of users and their authentication, etc.

 Cash Book records all receipts of and payments in cash. 

( True) Ledger is a subsidiary book.

 Petty cash book is used for recording a large number of small payments such as conveyance, cartage, postage, telegram and other expenses (miscellaneous expenses) which are usually in nature.

Journal proper is the book of original entry used for transactions that do not fit into specialized subsidiary books like the cash book, sales book, or purchase book.

Subsidiary books are books of original entry where transactions are recorded for the first time before being posted to the ledger.

The Cash Book, Purchases Returns Book, and Journal Proper are all considered subsidiary books in accounting systems.

Purchases Book, Sales Book, and Bills Receivable Book are all standard subsidiary books used to record specific types of credit transactions.

The sale of old furniture is not a credit sale of goods, so it should not be in the Sales Day Book. To rectify, we must reverse the entry in Sales (debit) and record it correctly in the Furniture account (credit).

If the Sales book was overcast, the sales account was credited with an excess amount. To rectify this after the trial balance, we debit the Sales account and credit the Suspense account.