Balance credit debit double entries entry balance income outgoings sources transaction

Date: 2015-10-07; view: 577.

Ledger posting, balance, list, bookkeeping, debits, records, double entry, ins, records, receipts, record keeping, journals, outs, ledges, statements, accuracy, errors, preliminary

DEVELOPING VOCABULARY

1. Fill in the missing words and word expressions from the list given. One word is used twice:

1. Every company needs some way of keeping systematic... about all trans­actions that have taken place, all this information being necessary to prepare further financial....

2. The most commonly used ... ... books are known to be called ... and ....

3. ... ... to the general ledger is usually done in the second step of the accounting cycle.

4. The ... ... system is based on the equations that should be always kept in ... : payments must equal ..., and credits must balance ....

5. The ... cycle is considered to be completed when the ... ... has been drawn up.

6. The laboratories are doing some ... experiments before starting work on this project.

7. ... and responsibility are sure to be the main qualities of any bookkeeper.

8. Economists expect new computer programmes to be very helpful in detecting possible ... in the accounting system.

9. In accounting and banking a ... is calculated as the difference between the total amount of money coming into (known as ...) and money go­ing out of (known as ...) an account.

10. The balance sheet is known to ... the assets the firm owns and the liabilities for which it is responsible at a given period of time.

2. Read the text below on bookkeeping. Choose a word from the list bellow to fill each of the gaps.

__a___ ___b__ bookkeeping is a system which enables the business manager to record all money coming in (__c_ ) and all money going out ( d ), and to work out the company's progress and present position. For every __e__ , there are two __f_ in the ledgers. In one ledger, it is shown on the __g___ side, and in the other, as a __h_ . Each ledger records transactions of a particular type. By adding the transactions for a period of time, you find the amount needed to __i_ the account. All the balances from the different ledgers are added together in the trial balance. If everything has been entered correctly, their totals must _ j _ - that is, they must be equal. The bookkeeper can then go on to prepare the profit and loss account and finally the balance sheet, which shows the state of the business on the date it was drawn up. You can see at a glance the __k__ and uses of funds.

3. Choose the appropriate words from those given in the brackets and translate the sentences from English into Russian.

1. The accounting cycle is known to consist of seven main steps, the (book­keeping/accounting) being responsible for the analysis and interpreta­tion of the (records/entries).

2. Having drawn up the (balance sheet/trial balance), the bookkeeper expects the final financial (accounts/statements) to be prepared in the (accounting/ managerial) department.

3. A bookkeeper deals with taxes, cash flow which includes cash (receipts / credits) and (debits/payments), sales, purchases and different other business (activities / transactions).

4. Bookkeepers first (post/record) all the data in the books which are called (ledgers/journals).

5. The record-keeping (accuracy/accurately) can't be checked until total debits and total credits are added together.

6. Disagreement between the total of the (debits/receipts) and the total of the (payments / credits) in the trial balance means that there is an error in the records.

7. A ledger is a book having one page for each (entry/account) in the organization's financial structure, (debits/credits) being shown on the left side.

8. All items of tangible assets should be (posted/listed) accurately before calculating their depreciation.

9. If sources exceed uses, there will be (a balance/an excess) of cash rep­resenting funds provided but not yet put to use in the business.

4. Complete the text using these words:

Bookkeepers record every purchase and sale that a business makes, in the order that they take place, in (1)........... . At a later date, these temporary records are entered in or (2) ...........to the relevant account book or (3). ........ . Of course the "books" these days are likely to be computer files. At the end of an accounting period, all the relevant totals are (4) . . . . to the profit and loss account. (5) ........... bookkeeping records the dual effect of every transaction -a value both received and parted with. Payments made or (6) ........... are entered on the left-hand (debtor) side of an account, and payments received or (7) ..........on the right-hand side. Bookkeepers will periodically do a (8)........... to test whether both sides of an account book match. In most business (9)..........., the seller of goods or services sends the buyer a bill or (10) ............ and later a (11) ......... acknowledging payment. Businesses are obliged to retain the documents - known as (12)...........- that support or prove an item in an account, and make them available to the internal and external auditors who check the accounts. Bookkeepers are not to be confused with librarians, who also keep books, or with bookmakers, who "make books" in the sense that they accept bets (on horse races, etc.) and traditionally wrote them down in a book like a bookkeeper's journal. Accountants, unlike bookkeepers, analyse financial records, and decide how to present them.

5. Add appropriate verbs from the text above to these sentences:

1. Bookkeepers ........... business transactions.

2. A debit is a payment ........... .

3. A credit is a payment ........... .

4. Debits are........... on the left-hand side.

5. At the bottom of the page, bookkeepers ........... the totals.

6. Companies have to........... invoices and receipts.

7. The auditors ........... the accounts.

8. Accountants, managers and shareholders ........... the accounts.