Chapter 6: Accounting for purchases and purchases returns Flashcards Preview

AAT (L2): FINAL Chapter Summary > Chapter 6: Accounting for purchases and purchases returns > Flashcards

Flashcards in Chapter 6: Accounting for purchases and purchases returns Deck (6)
Loading flashcards...
1

What does the Accounting System stages of recording & presenting financial transactions include?

1. Financial Documents
2. Books of Prime Entry
3. Double-Entry book-keeping
4. Trial Balance

2

Financial Documents relating to credit purchases are?

-Purchases invoices

-Credit notes received.

3

What is the purchases day book?

Purchases day book is the book of prime entry for credit purchases.

It is prepared from purchases invoices received from suppliers.

4

What is the purchases returns day book?

Purchases returns day book is the book of prime entry for purchases returns.

It is prepared from Credit Notes received from suppliers.

5

What are analysed purchases & purchases returns day books used for?

When a business wishes to analyse its purchases between different categories of expenditure.

6

Recording credit purchases in the double-entry system uses?

1. Financial documents: Purchases invoices
2. Books of prime entry: Purchases day books
3. Double Entry accounts: In the General Ledger
4. Memorandum accounts: In the purchases ledger.