General Journal and General Ledger

Year 12 Accounting
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Account Payable
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a supplier from whom goods (usually inventory) or
services have been purchased on credit, and the
amount still owing for those purchases (also called a
'creditor')
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Account Receivable
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a customer to whom inventory has been sold on
credit, and the amount still owing for those sales (also called a 'debtor')

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Created by
Jin_LIAO
Tags related to this set
Accounting
Source Document
Non Current Asset
Double Entry Accounting

Terms in this set (29)

Account Payable
a supplier from whom goods (usually inventory) or services have been purchased on
credit, and the amount still owing for those purchases (also called a
'creditor')
Account Receivable
a customer to whom inventory has been sold on
credit, and the amount still owing for those sales (also called a 'debtor')
Accounting Equation
the rule that states that assets must always equal liabilities plus owner's equity
Balance sheet
an Accounting report that details the business's assets, liabilities and owner's equity at a
particular point in time
current asset
a present economic resource controlled by an entity as a result of past events that is
reasonably expected to be converted to cash, sold or consumed within the next 12
months
non-current asset
a present economic resource controlled by an entity as a result of past events that is not
held for resale and is reasonably expected to be used for more than the next 12 months
current liability
a present obligation of an entity to transfer an economic resource as a result of past
events that is reasonably expected to be settled within 12 months
non-current liability
a present obligation of an entity to transfer an economic resource as a result of past
events that is not required to be settled within 12 months
double-entry Accounting
a system that records at least two effects on the Accounting equation as a result of each
transaction
ledger account
an Accounting record showing all the transactions that affect a particular item
General Ledger
the collective name for the main group of ledger
accounts
debit side
the left-hand side of a ledger account
credit side
the right-hand side of a ledger account
cross-reference
the name of the other account affected by a transaction, so that both accounts affected
by
a particular transaction can be identified
Cost of Sales
the value of inventory that has been sold in a particular period, valued at its cost price
Trial Balance
a list of all the accounts in the General Ledger, and their balances, to determine if total
debits equal total credits
balancing
ruling off an asset, liability or owner's equity account to determine its balance at the end
of the current period and transferring that balance to the next period
Goods and Services Tax (GST)
a 10% tax levied by the federal government on most purchases of goods (excluding
fresh food)
and services
tax invoice
a source document that contains specific information required by the ATO to
substantiate GST amounts
GST Clearing
a ledger account that records all GST transactions
GST settlement
a cash payment to the ATO to settle a GST liability from a previous period
GST refund
a cash receipt from the ATO to settle a GST asset from a previous period
General Journal
an Accounting record used to analyse and record each transaction, and to identify its
source document before posting to the General Ledger
narration
a brief description of a transaction recorded in the
General Journal, including a reference to the relevant source document
cash receipt
a source document used to verify cash received
Bank Statement
a report generated by a bank listing all cash deposits into and withdrawals from a
particular account
EFT receipt
a source document used to verify a cash transfer received via Electronic Funds Transfer
credit card receipt
a source document issued for sales made on credit card
cheque butt
a source document used to verify a cash payment made by cheque