CAMBRIDGE INTERNATIONAL AS & A LEVEL ACCOUNTING
Language worksheet 1.1
Cash transactions
Answers
Transaction
Account to debit
(received into the account)
Account to credit
(what is given)
Crystal deposits the capital that she has invested to start the
business into the business bank account
Bank
Capital
Purchased clothes to sell to customers
Purchases
Bank
Receives a bank loan via a bank transfer
Bank
Bank loan
Purchased equipment (till, fixtures and fittings, etc.) and paid by
debit card
Equipment
Bank
Returned some damaged clothes that were not in the correct
condition to resell to customers
Bank
Purchases returns
Bought lighting for the shop by cheque
Lighting
Bank
Carriage inwards paid by debit card
Carriage inwards
Bank
Paid electricity by debit card
Purchases
Bank
Cambridge International AS & A Level Accounting – Malpas, Seagrove & Whatford © Cambridge University Press 2021
1
CAMBRIDGE INTERNATIONAL AS & A LEVEL ACCOUNTING
Match the definition with the term.
Carriage inwards
The additional delivery cost paid by a business in excess of the
purchase price of the goods purchased for resale. It is added to the
cost of goods by the supplier.
Drawings
Money the business owner takes out of the business for personal use.
Capital
The money invested in a business by its owner(s).
Posting
The process of recording financial transactions in ledger accounts.
Purchases returns
Purchased goods that are sent back to the supplier who agrees to
accept them back and return any money paid.
Sales returns
Where a customer who has already bought goods sends them back to
the seller.
Cambridge International AS & A Level Accounting – Malpas, Seagrove & Whatford © Cambridge University Press 2021
2