Bank credit memo advice A bank document informing

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. 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. cash sales slip, sales invoice, purchase invoice, cheque copy