When an income income account is credited at the time the money is received.
INCOME METHOD
A business paper issued by the seller to the buyer when the buyer returns the thing bought or asks for an allowances for the defect on the thing.
CREDIT MEMORUNDUM
A recorded showing the details of a general ledger account.
SUBSIDIARY LEDGER
Refers to the preparation of trial balance after closing the income and expense accounts. The post closing trial balance shows only the assets, liabilities, and owner’s equity.
PREPARING A POST CLOSING TRIAL BALANCE
A document which evidences receipt of cash.
OFFICIAL RECEIPT
The process of transferring the information from the journal to the ledger.
POSTING
A deductions from the list price to encourage buyers to buy more.
TRADE DISCOUNTS
Refers to the preparation of closing entries at the end of the accounting period to bring the income and expense accounts to zero balance.
CLOSING THE BOOKS
A document which evidences payment. It contains information about the transaction, the payee, and the approving official.
CASH VOUCHER
It is the statement showing the open accounts in the ledger. It proves the equity of the debit and credit totals after posting to the ledger.
TRIAL BALANCE
Issued when payment is made from the cash deposited in the bank.
CHECK
It is type of journal with many money columns.
COLUMNAR JOURNAL
Entries prepared at the end of the accounting period to update the records.
ADJUSTING THE BOOKS
The amount that can be received from the sale of the asset after its estimated life.
SCRAP VALUE OR SALVAGE VALUE
May either be an income or expense.
INTEREST
Accounts with open balances may either have a debit or credit balance.
TRIAL BALANCE OF BALANCES