Credit creditors ledger stock debit debtors

■ an amount entered on the left-hand side of an account, recording money paid out

■ a book of accounts

■ customers who owe money for goods or services not yet paid for

■ an amount entered on the right-hand side of an account, recording a payment received

■ goods stored ready for sale '

■ suppliers who are owed money for purchases not yet paid for

Complete the sentences. Look at A, B and C opposite to help you.

1._______ shows where money comes from and where it goes: it is always

transferred from one________ to another one. Every event is entered twice - once as a__________credit and once as a_____________.

2.Most businesses record very frequent or numerous transactions in__________ ____________or____________

3.The main account books are called_________ _________,and the book relating to creditors is called the______________ ____________.

4.In order to prepare financial statements, companies do a___________ ___________ which copies all the debit and credit balances of different accounts onto a single page.

3.Complete the sentences using ‘debit’ or ‘credit’. Look at A opposite to help you.

1. If you buy new assets, you____________ the cash or capital account.

2. If you pay some bills, you___________the liabilities account.

3. If you buy materials from a supplier on 60 days’credit, you_______ the purchases account and___________the supplier’s account.

4. If you sell something to a customer who will pay 30 days later, you __________the sales account and__________the customer’s account.