journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
The presentation is part of a lecture series on Management Information Systems. It is an overview of the General Ledger and Financial Reporting System (GLFRS) as part of the Accounting Information system (AIS). It also covers an assessment of the role of accounting software and Extensible Business Reporting Language (XBRL).
DOI: http://dx.doi.org/10.13140/RG.2.2.22328.47369
Updated at: https://www.researchgate.net/publication/353851801_General_Ledger_and_Financial_Reporting_System_GLFRS
Lecture 21 expenditure cycle part i - accounting information systesm james ...Habib Ullah Qamar
the expenditure cycle, the physical phase, financial phase, the purchases system, the cash disbursement system, conceptual revenue cycle, manual revenue cycle and computer based accounting information systems
Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. It identifies transactions and events of a specific entity. A transaction is an exchange in which each participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity means an economic unit that performs economic activities.
A presentation for Accounting students on the basic elements of the accounting equation. Covers definitions of assets, liabilities, owner's equity, revenue and expenses. Designed for VCE Accounting students.
5.01 Meaning of an Account
5.02 Meaning of Debit and Credit
5.03 Classification of Accounts
5.04 Significance of Debit and credit in Accounts
5.05 Journal
5.05.01 Steps and Rules of Journalising
5.05.02 Totaling and Carry Forward.
5.05.03 Simple and Compound Journal Entries
5.06 Opening Entry
5.07 Sub-division of Journal
5.08 Ledger
5.08.01 Meaning
5.08.02 Form of a Ledger
5.08.03 Mechanics of Posting
5.08.04 Balancing of Ledger Accounts
Accounting is defined as the art of Recording, Classifying and Summarizing transactions in monetary terms (in Money terms) for preparation of Financial Statements
Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping.
Accounting, is an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
The presentation is part of a lecture series on Management Information Systems. It is an overview of the General Ledger and Financial Reporting System (GLFRS) as part of the Accounting Information system (AIS). It also covers an assessment of the role of accounting software and Extensible Business Reporting Language (XBRL).
DOI: http://dx.doi.org/10.13140/RG.2.2.22328.47369
Updated at: https://www.researchgate.net/publication/353851801_General_Ledger_and_Financial_Reporting_System_GLFRS
Lecture 21 expenditure cycle part i - accounting information systesm james ...Habib Ullah Qamar
the expenditure cycle, the physical phase, financial phase, the purchases system, the cash disbursement system, conceptual revenue cycle, manual revenue cycle and computer based accounting information systems
Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. It identifies transactions and events of a specific entity. A transaction is an exchange in which each participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity means an economic unit that performs economic activities.
A presentation for Accounting students on the basic elements of the accounting equation. Covers definitions of assets, liabilities, owner's equity, revenue and expenses. Designed for VCE Accounting students.
5.01 Meaning of an Account
5.02 Meaning of Debit and Credit
5.03 Classification of Accounts
5.04 Significance of Debit and credit in Accounts
5.05 Journal
5.05.01 Steps and Rules of Journalising
5.05.02 Totaling and Carry Forward.
5.05.03 Simple and Compound Journal Entries
5.06 Opening Entry
5.07 Sub-division of Journal
5.08 Ledger
5.08.01 Meaning
5.08.02 Form of a Ledger
5.08.03 Mechanics of Posting
5.08.04 Balancing of Ledger Accounts
Accounting is defined as the art of Recording, Classifying and Summarizing transactions in monetary terms (in Money terms) for preparation of Financial Statements
Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping.
Accounting, is an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Accounting - Lesson 5 : Transactions That Affect Revenue, Expenses and Withdr...Elearningpower
This course covers the complete accounting cycle and is designed for those
who are interested in working in the areas of bookkeeping, clerical
accounting, finance or general office work or are looking to review their
accounting knowledge.Our accounting course teaches principles of
accounting, which are consistent across the globe. Even though there may
be minor differences in accounting principles in different countries, the core
accounting principles are the same.
Assets are anything of value that is owned or due to business, understand the dynamics of accrual accounting and balance sheet.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Understand how Accrual Accounting method records transaction as they occur and it is identified by looking for few key indicators in the balance sheet.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Accounting - Lesson 4 : Transactions That Affect Assets Liabilities, and O...Elearningpower
This course covers the complete accounting cycle and is designed for those
who are interested in working in the areas of bookkeeping, clerical
accounting, finance or general office work or are looking to review their
accounting knowledge.Our accounting course teaches principles of
accounting, which are consistent across the globe. Even though there may
be minor differences in accounting principles in different countries, the core
accounting principles are the same.
AndersonMichael:Assignment 4-Reporting to Management.pdfmbanderson1
Business Accounting Presentation explaining Balance Sheet, Profit and Loss Statement, Statement of Cash Flows. Cash basis accounting and accrual basis accounting. Reporting financial statements to management.
Similar to Chapter 4 double entry recording process (20)
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Chapter 4 double entry recording process
1. Principle of Accounting
Chapter 4
The double-entry Recording Process
BA in International Business
Foreign Trade University
2. Outline
• An introduction to double-entry accounting
• State the rules of double-entry for the
different types of accounts.
• Footing and balancing ledger accounts
• The role of trial balance
• Detecting errors through a trial balance
• Chart of account
• Three-column ledger accounts
• Accounting for drawings
3. The Account
Accounting’s main summary device
is the account, the record of changes.
Accounts are grouped in three broad categories,
according to the accounting equation:
Cash
4. The Account
Assets are the economic resources that
benefit the business now and in the future
Cash Land
Accounts receivable Buildings
Inventory Equipment,
Notes receivable furniture,
Prepaid expenses and fixtures
5. The Account
Liabilities are the debts of the company.
Notes payable
Accounts payable
Accrued liabilities
(for expenses incurred but not paid)
Long-term liabilities (bonds)
6. The Account
Stockholders’ (owners’) equity is the
owners’ claims to the assets of a corporation.
8. Accounting Transactions
Transactions are economic events that require
recording in the financial statements.
• May be external or internal.
• Not all activities represent transactions.
• Each transaction has a dual effect on the
accounting equation.
9. Accounting Transactions
Question: Are the following events recorded in the
accounting records? Discuss
Purchased a product
Event computer. design with Pay rent.
potential
customer.
Criterion Is the financial position (assets, liabilities, or
stockholders’ equity) of the company changed?
Record/
Don’t Record
10. Double-Entry Accounting
Double-entry bookkeeping means to record
the dual effects of each business transaction.
11. The T-Account
Account Title
Debit Credit
LEFT SIDE RIGHT SIDE
Three parts :
1) the Title of the account
2) a left or Debit side
3) a right or Credit side
13. Debits and Credits
• Debit (dr.) - an entry or balance on
the left side of an account
• Credit (cr.) - an entry or balance on
the right side of an account
• Remember:
– Debit is always the left side!
– Credit is always the right side!
14. Recording entries in ledger
accounts
Identify the transaction and state two ledger accounts
affected by the transaction
Classify the ledger accounts according to
their report classification
Determine whether each account is
increased or decreased by the transaction
State whether the accounts will have
a debit or a credit entry
15. Recording entries in ledger
accounts
Air & Sea received $50,000 from issuing stock.
Stockholders’
Assets = Liabilities + Equity
Cash Common Stock
Debit Credit
for for
Increase, Increase,
50,000 50,000
16. Recording entries in ledger
accounts
Air & Sea purchased land for $40,000 cash.
Stockholders’
Assets = Liabilities + Equity
Cash Common Stock
Bal. 50,000 Credit Bal. 50,000
for
Decrease,
40,000
Land
Debit
for
Increase,
40,000
17. Recording Transactions
in the Journal
Journal Page 1
Date Accounts and Explanation Debit Credit
April 2 Cash 50,000
Common Stock 50,000
Issued common stock
18. Analysis chart
• An analysis chart provides an analysis of a
financial transaction to determine the double-
entry to be recorded in ledger accounts.
• An analysis chart helps to ensure that the
double-entry for each transaction is correctly
determined.
• Example
Transaction A/c names Classifica- Increase/ Debit/
tion Decrease Credit
Bought vehicle for Vehicle Asset Increase Dr
$18,000 by cash at Cash at Asset Decrease Cr
bank bank
19. Double-entry accounting
Vehicles
Cash at bank Mar 1 Cash at bank 18,000
Mar 1 Vehicles 18,000
Mar 4 Wages 400
Wages
Mar 4 Cash at bank 400
20. Revenue and Expense
Transactions
• Retained Income is merely accumulated
revenues less expenses, but we cannot
just increase or decrease the Retained
Income account directly.
– This would make preparing the
income statement very difficult
• By accumulating revenues and
expenses separately, a more
meaningful income statement can be
easily prepared.
21. Revenue and Expense
Transactions
• Revenue and expense accounts are a
part of Retained Income.
Retained Income
Decrease Increase
Expense Revenue
Debit Credit
Increase Increase
22. Revenue and Expense
Transactions
• Summary of revenue and expense transactions:
– A credit to a revenue increases the revenue
and increases Retained Income.
– A debit to a revenue decreases the revenue
and decreases Retained Income.
– A credit to an expense decreases the expense
and increases Retained Income.
– A debit to an expense increases the expense
and decreases Retained Income.
23. Debits and Credits Summary Liabilities
Normal
Debit / Dr. Credit / Cr.
Normal
Balance Balance
Debit Credit Normal Balance
Assets Chapter
Stockholders’ Equity
Stockholders’
3-24
Debit / Dr. Credit / Cr.
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Chapter
Expense
3-23
Revenue
Chapter
3-25
Debit / Dr. Credit / Cr.
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Chapter
3-27 Chapter
3-26
SO 3 Define debits and credits and explain their use in recording business transactions.
24. Debits and Credits Summary
Review Question
Debits:
a. increase both assets and liabilities.
b. decrease both assets and liabilities.
c. increase assets and decrease
liabilities.
d. decrease assets and increase
liabilities.
SO 3 Define debits and credits and explain their use in recording business transactions.
25. Examples – Exercise 4.3
Transaction Account Classifi- Increase/ Debit/
names cation Decrease Credit
Banked $60,000 cash Cash at bank A Increase Dr
to start business Capital OE Increase Cr
Paid the 1st month Expense
rent $4,000 cash
Bought shop fittings Shop fitting
for cash $12,000 Cash
Purchased CDs for Stock control
$4,300 on credit Credit
Sold CDs
Cost $2,000
26. Example – Exercise 4.3
(Cont’d)
Transaction Account Classifi- Increase/ Debit/
names cation Decrease Credit
Sold CDs for cash $4,300
Paid 1 month’s advertising
$600
Borrowed cash from bank
$5,000
Sold CDs on credit at cost
$600
(Record Cost of sale)
Sold CDs on credit for $1,200
(Record revenue)
Purchased stock for cash
$3,600
27. Example – Exercise 4.3
(Cont’d)
Transaction Account Classifi Increase/ Debit/
names -cation Decrease Credit
Repaid the National Bank
$2,000
Paid wages $800
Cash sales of stock at cost
$1,200 (record cost of sale)
Cash sales of stock for
$2,200
(record revenue)
Purchased inventory on
credit
for $3,400
28. Footing – Example E 4.3
Cash at bank
Feb 1 Capital $60,000 Feb 2 Rent $ 4,000
5 Sales $ 3,400 3 Shop fittings $ 12,000
8 Loan $ 5,000 6 Advertising $ 600
10 Sales $ 2,200 9 Stock control $ 3,600
14 Loan $ 5,000
47,600 15 Wages $ 800
$70,600 $23,000
29. Balancing – Example E 4.3
Cash at bank
Feb 1 Capital $60,000 Feb 2 Rent $ 4,000
5 Sales $ 3,400 3 Shop fittings $ 12,000
8 Loan $ 5,000 6 Advertising $ 600
10 Sales $ 2,200 9 Stock control $ 3,600
14 Loan $ 2,000
15 Wages $ 800
Balance $ 47,600
$70,600 $70,600
Balance $47,600
30. Closing the Accounts
• Once the financial statements are
prepared, the ledger accounts must
be prepared to record the next
period’s transactions. This process is
called closing the books.
– The balances in all “temporary”
stockholders’ equity accounts are
transferred to a “permanent”
stockholders’ equity account.
– The revenue and expense accounts are
“reset” to zero and the current net
31. Closing the Accounts
• The Closing Process:
– The revenue accounts are
closed to Income Summary
in the first
entry.
– The expense accounts are
closed to Income
Summary in
the second entry.
– The amount of Net Income (revenues -
expenses) is then transferred from
32. Preparing the Trial Balance
• Once all transactions have been posted
to the ledger, a trial balance is
prepared.
• Trial balance - a list of all of the
accounts with their balances – assets
first, followed by liabilities, and then
stockholders’ equity. It is prepared as a
test or check before continuing the
recording process.
33. Preparing the Trial Balance
• The purposes of the trial balance:
– To help check on accuracy of posting by
proving whether the total debits equal
the total credits
– To detect errors in double-entry
recording
– To establish a convenient summary of
balances in all accounts for the
preparation of formal financial
statements
34. Trial balance – An example
Dr Cr
Capital – Mammone 60,000
Rent 4,000
Shop fittings 12,000
Stock control 7,500
Advertising 600
Loan 3,000
Wages 800
Sales 6,800
Costs of sales 3,800
Debtors 1,200
Creditors 7,700
Cash at bank 47,600
77,500 77,500
35. Trial balance (Cont’d)
Some errors may not be detected by a
trial balance:
• Entering an incorrect amount for both the
debit and credit.
• Entering a debit or credit in the wrong
account.
• The debit and credit entries are reversed.
• Omitting a transaction completely.
• Compensating errors.
36. Chart of accounts
• An organized index to the ledger
accounts
• Groups the account together according
to their accounting report classifications
• Facilitate report preparation
37. Three-column ledger accounts
• A simpler form of ledger with three columns:
debit entry, credit entry and the balance of
account.
• Advantage: the balances of all accounts are
readily available.
• Ideal for computerized system.
Eg: Three-column ledger – Cash at bank account
Date Account Dr Cr Balance
1 Capital 25,000 25,000 Dr
2 Loan 10,000 35,000 Dr
4 Loan 500 34,500 Dr
5 Stock control 600 33,900 Dr
38. Accounting for Drawings
• Drawings: withdrawals of assets by the
owner for personal use.
• The balance of drawings is accounted for
as a deduction against the owners’ equity.
Example:
– The proprietor withdraws $500 cash for personal use.
– Balances of accounts under owners’ equity section are
as follows:
Capital account: $50,000
Profit earned for the year: $20,000
Drawings for the year: $10,000
Requirement: Record the transaction and prepare an
extract of the statement of financial position, owners’
equity section.
39. Accounting for Drawings
(Cont’d)
Dr Drawings a/c $500
Cr Cash at bank a/c $500
Extract statement of financial position
Owners’ equity
Capital $50,000
Plus Net profit $20,000 $70,000
Less Drawings $10,000 $60,000
40. Flow of Accounting Data
Transaction Amounts
Transaction Transaction Entered in Posted to
Occurs Analyzed the Journal the Ledger
41. Ledger Accounts
• Ledger - a group of related accounts kept
current in a systematic manner
– Think of a ledger as a book with one page for
each account.
– The ledger is a company’s “books.”
• General ledger - the collection of
accounts that accumulates the Ledger
amounts reported in the major
financial statements
44. Quiz
Give appropriate terms for the below definitions.
2. A numerical list of all the accounts used by a company.
3. An entry on the left side of an account.
4. A list of each account and its balance at a specific point
in time used to prove the equality of debits and credits.
5. A system of accounting in which every transaction is
recorded with equal debits and credits.
6. An entry on the right side of an account.
7. An analysis of a financial transaction leading to
determine the double-entry to be recorded in ledger
accounts.
45. Quiz
Give appropriate terms for the below definitions.
2. A numerical list of all the accounts used by a company.
(chart of account)
3. An entry on the left side of an account.(debit)
4. A list of each account and its balance at a specific point
in time used to prove the equality of debits and credits.
(balancing ledger accounts)
5. A system of accounting in which every transaction is
recorded with equal debits and credits. (trail balance)
6. An entry on the right side of an account (credit)
7. An analysis of a financial transaction leading to
determine the double-entry to be recorded in ledger
accounts. (an analysis chart)