Fsa Subject

1a. Explain the purpose and use of the different accounting records: *Invoice:+Relates to sales and purchase order+When business sells goods or services on credit to a customer+This is a demand for payment+Produced in multi-part stationary, photocopied or carbonized copy * Credit note: a document issued by the seller to show a reduction in the amount owed by the buyer, maybe due to*Incorrect goods specification+Damaged goods+Faulty goods -Sometimes printed in red to distinguish from invoice*Sales day book: To keep a list of all invoices sent out to customer each day. Sales ledger folio is a reference to the sales ledger. To analyze sales which helps how best to run the business*Sales return day book: When the customers return goods for some reasons. Also called inwards journal. The source document is the credit note*Journal: Is the book that records business transactions then enters in to the accounting system*Cash book: Used to keep a cumulative record of money received and money paid out by the business. Usually referred to as petty cash and is accounted separately*Nominal ledger: is a bookkeeper's collection and summary of a company's accounts. It usually have 2 column: debit and credit*Sales ledger: the sales ledger deals invoice sent out and consists of personal accounts for credit customers*Account receivable ledgers: An accounts receivable ledger is a book or document that contains a list of all of the outstanding money a person or company is owed. This means it is a book where the company keeps a list of all the people it has sold products to on credit. After a company makes a sale and sends a bill or invoice, that account is considered an account receivable
1b the importance and meaning of the fundamental accounting concepts applicable in the scenario: *Going concern assumption that an enterprise will continue in operational existence for the foreseeable future. Management must review the going concern status to confirm it is appropriate for the financial