Professional Documents
Culture Documents
PERIODIC MEASUREMENT
LEARNING OUTCOMES:
Upon
ACCOUNTING TERMINOLOGY
Purchase
The
Sales
Revenue
The sales of goods in which the business normally
deals and which the business buys with the prime
intention of resale.
Returns
award
The good that are returned by the customers due to
defective, damaged in transit or otherswise
unsuitable. A contra account to purchase.
Return
Outwards
The good that are returned by the business dut
to defective, damaged in transit or otherwise
unsuitable. A contra account to purchase.
Carriage
Inwards
The cost of moving the stocks from the seller to
the buyer. The cost is considered as part of the
purchase cost.
Carriage
Outwards
The cost of transporting goods to customers.
This cost is treated as selling expense and is not
considered as part of the cost of stocl or
inventory.
Cash
Sales
Purcha
se
Stock
CASH
COLLECTION
PURCHASE
DEBTORS
STOCK
CREDIT
SALES
CARRIAGE INWARDS
If the business receives the
transport bill directly from
the transport firm.
I. Debit carriage inwards account
II. Credit the cash account for cash
payment or
III. Credit the transport firm
account for credit payment
If
EXPENSES
Represent
Typical
I.
II.
III.
IV.
V.
VI.
expenses account:
Rent Expense
Salary or Warge Expense
Gas and Eletricity Expense
Supplies Expense
Advertising expense
Interest Expense
THE END