1 / 24

RECORDING OF BUSINESS TRANSACTIONS

RECORDING OF BUSINESS TRANSACTIONS. Posting. Journalizing. Transaction Analysis. Financial Statement : Income Statement Balance Sheet Statement of Owner’s Equity Cash Flow Statement Notes of Financial Statement. Trial Balance. ACCOUNTING CYCLE.

kareem
Download Presentation

RECORDING OF BUSINESS TRANSACTIONS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. RECORDING OF BUSINESS TRANSACTIONS

  2. Posting Journalizing Transaction Analysis • Financial Statement : • Income Statement • Balance Sheet • Statement of Owner’s Equity • Cash Flow Statement • Notes of Financial Statement Trial Balance ACCOUNTING CYCLE

  3. UNDERSTANDING THE STEPS OF RECORDING PROCESS Transaction occurs and the information is recorded on a source document Source document information is recorded in a journal Transaction information is posted from the journal to the ledger A Trial Balance is prepared at the end of the period Financial Statement are prepared (Income Statement, Statement of Owner’s Capital, Balance Sheet, Cash Flows Statement, Notes of Financial Statement) To the Decision Makers

  4. The General Journal and Its Function • A Journal is the first recording of the business transaction • The function of a journal is to provide a permanent and complete record, arranged in chronological order for future reference, of all the business transactions of a firm • The manner of entering transaction in the journal displays their effects on the accounts of the firm • The process of recording a transaction in the journal is called journalizing • This form of recording a transaction is called a journal entry

  5. The Procedures of Journalizing a transaction • Every page of the journal is numbered for future reference • The year is entered at the head of the date column • The date of the business transaction is entered in the date column. The name of the month need not be repeated for successive transactions during that month • The name of the account to be debited is entered against the left margin of the description column • The amount to be debited is entered in the debit amount column • The name of the account to be credited is entered on the line following the debit account entry. An indentation is made to indicate that the account is credited

  6. Continuing………. • The amount to be credited is entered in the credit amount column • A detailed description is entered immediately below the journal entry. This valuable information becomes a permanent record for the company • A line is usually skipped between journal entries • The reference column is provided for entering cross references to the accounts in the ledger

  7. The Types of Journal • There are two types of journal: • General Journal • Special Journal • Special Journal consists of: • Cash Receipts Journal • Cash Disbursement Journal • Sales Journal • Purchased Journal • General Journal

  8. Illustration of the Two Column Journal (1) General Journal Page 6 (in Rp.000) (10) (4) (5) (2) (6) (7) (8) (9)

  9. Examples of Special Journal

  10. Examples of Special Journal

  11. Preparing Journal Entries in General Journal • The “Kartika”, Co is a service firm. Some of the following transactions took place during the month of May, 2008. • How to record are those transactions into general journal?

  12. Continuing …………

  13. Continuing……….

  14. Recording to transaction May, 1, 2008

  15. Recording to transaction May, 3, 2008

  16. Recording to transaction May, 8, 2008

  17. Recording to transaction May, 11, 2008

  18. Recording to transaction May, 17, 2008

  19. Recording to transaction May, 18, 2008

  20. Recording to transaction May, 27, 2008

  21. Recording to transaction May, 31, 2008

  22. Recording to transaction May, 31, 2008

  23. Recording to transaction May, 31, 2008

More Related