Bank credit memo (advice)
A bank document informing the business of an increase made in the business’s bank account
Cash receipts daily summary
Lists money coming in from customers on account
Clearing an account balance
Making an account balance 0
Harmonized Sales Tax (HST)
A combination of provincial and federal taxes
Opening entry
First entry made when a new business is starting
Purchase invoice
Source document for a purchase on account
Sales invoice
Source document for sales on account
Credit
The right side of an account
Bank debit memo (advice)
A bank document informing the business of decrease made in the business’s bank account
Cash sales slip
A business form showing the details of a transaction in which goods or services are sold to a customer for cash
Compound entry
A transaction that affects more than two accounts
Journal
A book in which the accounting entries for all transactions are first recorded
Point of sale (POS) terminal
An electronic device cash register used to process sales at retail locations
Remittance
A payment being made to a creditor or the government
Sales tax
An additional charge added to sales payable to the government
Contra account
Account in a ledger that reduces the value of a related account
Account in a ledger that reduces the value of a related account Eg Account in a ledger that reduces the value of a related account Eg. HST Recoverable is contra (a subtraction from) to HST Payable
Book of original entry
Refers to the accounting journal in which business transactions are initially recorded – General Journal
Cheque copy
A source document supporting the accounting entry for a payment by cheque
Goods and Services Tax (GST)
Tax that’s added to most goods and services sold for domestic consumption Revenue for federal government
Journal entry
A record of accounts affected by a transaction
Provincial Sales Tax (PST)
A tax charged on sales that needs to be collected from customers and sent to the provincial government
Remittance advice
The tear-off section of a cheque explaining what the cheque is for
Debit
The left side of an account
Source documents
Evidence that a transaction has occurred—e. g Evidence that a transaction has occurred—e.g. cash sales slip, sales invoice, purchase invoice, cheque copy