Presentation Transcript

1. Chapter 4- Accounting Cycle

   After this lecture, you are be able to: Understand the steps in accounting cycle Convert from source documents to transaction Demonstrate the effect of transaction to accounting equation Recording based on types of accounts Recording transaction into general journal Comparison between manual and computerized accounting system

2. The step in accounting cycle

3. CONVERT THE SOURCE DOCUMENTS TO TRANSACTION Basic transaction Sales goods/ services asset Buy/ purchase goods/ services asset By cash or credit or both
4. TYPE SOURCE DOCUMENTS MEMO OFFICIAL RECEIPT/ RECEIPT MEMO James Kirk, CPA 123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Date: 1 Jan 2012_______ Received from Mr. James Kirk To : Account department : Att : Mr. Zul Bank in cash for an investment RM13,500 into bank business as capital. Mr. Zul ----------------------------------------- Authorized Signature (Finance Dept) Official receipt IkhtiharBuilding Enterprise 234 Klang Road Malaysia 123456  Tel: 554-3456  Fax: 554-3456 Receipt No.: 1024 Date: 3 Jan 2012 Received from Mr. James Kirk The sum of RM One Thousand six hundred only RM1,600.00 Being payment for rental -------------------- (Authorized Signature (Finance Dept)
5. TYPE OF SOURCE DOCUMENTS Invoices Receipt Bingham Company 55, JLN 5/5 43400 BANGI SELANGOR 03-90807060 Fax 03-10203040 an@gmail.com Customer Name: Mr. James Kirk Invoice no. 123 REMARKS: Cheques should be crossed & made payable to “Bingham Company” Credit Term is 2/10, n 30 days from the Invoice Date, unless otherwise specified. All transaction is in Ringgit Malaysia For Bingham Co. Authorized Signature is not applicable because it is computer generated Sales Receipt Date: 17/1/2012 Receipt # 2670 Bingham Company 55, JLN 5/5 43400 BANGI SELANGOR 03-90807060 Fax 03-10203040 an@gmail.com Sold To James Kirk 123 Genting Road Malaysia 123456 Tel: 554-1234  Fax: 554-1233 Customer ID [ABC12345] Payment Method Check No.JobCHEQUE/ CHECK 123453 Payment for equipment COMPUTER RM6700 (Invoice no. 123) –Balance RM2800
6. TYPE OF SOURCE DOCUMENTS Invoice Invoice City Stationery Address: 234, Jln 567, 43400 Bangi Selangor Customer Name: Mr. James Kirk Invoice no. 789 date : 20/ 1/ 12 REMARKS: Cheques should be crossed & made payable to “City Stationery “ Credit Term is 2/10, n 30 days from the Invoice Date, unless otherwise specified. All transaction is in Ringgit Malaysia For City Stationery Authorized Signature is not applicable because it is computer generated Invoice no.02345 Date: 23/1/2012 James Kirk  123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Service charge to Mr. Charles Customer ID [CP12345} Bill for Accounting Services RM5,500. REMARKS: Cheques should be crossed & made payable to “James Kirk” Credit Term is 2/10, n 30 days from the Invoice Date, unless otherwise specified. All transaction is in Ringgit Malaysia  For James Kirk (Authorized Signature is not applicable because it is computer generated)
7. TYPE OF SOURCE DOCUMENTS Payment voucher Receipt Receipt Date: 17/1/2012 Receipt # 2670 Telekom Malaysia Seksyen 5 43400 BANGI SELANGOR 03-90801000 To James Kirk 123 Genting Road Malaysia 123456 Tel: 554-1234  Fax: 554-1233 AC/no 567891234-ABC12345 Payment Method Check No.JobCHEQUE/ CHECK 123459 Payment for telephone bill RM210 for the month of January Payment voucher Date: 30/1/2012 Voucher # 1670 James Kirk  123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Payment Method Check No. Job CHEQUE/ CHECK 123457  Payment for secretary’s salary RM1540 for month of January 2012  
8. TYPE OF SOURCE DOCUMENTS Receipt Receipt Receipt Date: 17/1/2012 Receipt # 2679 Bingham Company 55, JLN 5/5 43400 BANGI SELANGOR 03-90807060 Fax 03-10203040 an@gmail.com Received from James Kirk  123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Customer ID [ABC12345] Payment Method Check No.JobCHEQUE/ CHECK 123460  Payment for equipment COMPUTER RM970  (Invoice no. 123) Receipt Date: 30/1/2012 Receipt no # 1671 James Kirk  123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Payment Method Check No. Job CHEQUE/ CHECK 065432  Payment from Mr. Charles RM2,450 for previous bill 02345.
9. TYPE SOURCE DOCUMENTS MEMO OFFICIAL RECEIPT/ RECEIPT MEMO James Kirk, CPA 123 Genting Road Malaysia 123456  Tel: 554-1234  Fax: 554-1233 Date: 31 Jan 2012_______ Received from Mr. James Kirk To : Account department : Att : Mr. Zul Just withdraw RM2,200 (cash) for personal use Mr. Zul ----------------------------------------- Authorized Signature (Finance Dept) Official receipt Cade Education 43400 Serdang, Selangor Malaysia  Tel: 03-8940000  Fax: 03-8946456 Receipt No.: 4567 Date: 31 Jan 2012 Received from Mr. James Kirk The sum of RM Two hundred and seventy five only RM275.00 Being payment for education course fee -------------------- (Authorized Signature (Finance Dept)

10. REFER TO THE HANDOUT CHO1

    Convert from source documents to transaction : Transaction : Date Event (sale/purchase) good/services/asset Amount Cash or credit (pay later) If credit state the parties involve Demonstrate the effect of transaction to accounting equation
11. RECORDING BASED ON TYPES OF ACCOUNTS
12. Example
13. Chart of Accounts