Accounting Questions and Answers

sales                                                        10900
- Returns inwards                                      600
-carriage outwards                                    300   
                                                                10000 
opening stock           1000
purchase                  4000
- returns outwards      800         3200      
+ carriage inwards                     200
goods avail. for sale                  4400

less; closing stock     2000
carriage outwards      300        2300          2100
Gross profit                                                7900                                        

Uncredited cheques: These are cheques received from customers and other sources for which the firm has banked but the bank has not yet availed the funds by crediting the firm's account. In this case, the cash book balance will be more than the bank balance.

Charge on turnover (COT) also known as Commission on turnover are charges a customer incurs for debit transactions (transaction involving withdrawals and/or operating cost to the bank) from his current account. 

Electronic charges or payment on the bank statement not yet recorded in the cashbooks can cause discrepancies on the cash book. If interest has being paid on the account and not recorded of the cashbook, the bank statement is likely going to be overstated with the amount paid and not recorded.

A credit note is one of the source documents used by a business. It is a receipt given by a seller to a buyer. 

Credit notes are typically used when there has been an error in an already-issued invoice, such as an incorrect amount, or when a customer wishes to change their original order.