VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. 3.1
THE BASIC
ACCOUNTING PROCESS

2. Video of this presentation at…
YouTube Channel for VCE Accounting

3. © Michael Allison. Author’s permission required for external use.
• The business
engages in
transactions
every day
• Each
transaction
creates a
source
document
• This is evidence
that
transactions
have occurred
• The everyday
transactions of
the firm are
recorded and
entered into
the firm’s
journals
• Each journal
records a
different type
of activity
• The totals
from the
journals are
used to create
reports
• These reports
show the
firm’s
financial
performance,
position and
cash balance
 The basic accounting process works as follows…
3.1 THE BASIC ACCOUNTING PROCESS
3. Reporting of
results
Income Statement
Balance Sheet
Cash Flow Statement
2. Recording of raw
data
Cash Receipts Journal
Cash Payments
Journal
Sales Journal
Purchases Journal
General Journal
1. Collecting of raw
data
Receipts
Cheque Butts
Invoices
Memos
Statements of
Accounts

4. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
SQ1 X