A General Journal Used For The Keeping Of Records For Financial Transactions

| Used to keep track of all the financial transaction in a business such as all items purchased, all bills paid, and all payroll calculations

In particular, in special journals, some accounting textbooks do not always require a reference to be recorded in the Post Ref. column. In this practice set, in order to receive full marks, every transaction entered in a special journal requires an entry in the Post Ref. column. Note that in the special journals, if the account name selected for a transaction corresponds to the heading of one of the columns in that special journal, the post ref is to be recorded as an X. This is because these transactions are not posted on a daily basis. In order to receive full marks, you must record only the letter X in the Post Ref. column for these transactions. Note that in special journals, the Other Accounts column should not be used to record movements of inventory. There may be entries in the general journal that require posting to both a control account and a subsidiary ledger. In these cases, after you have posted to both ledgers, you should enter the reference for the subsidiary ledger account in the Post Ref. column to indicate that you have posted to both accounts. General journal entries do NOT require a description of the journal entries. Ledgers: When posting a transaction to a ledger account, under the Description column, please type the description of the transaction directly into the field. The exact wording does not matter for marking

Reconciling all sub-ledgers to the general ledger for accurate interpretation of the business activity. For example, Accounts Payable Aging Report will be compared to the General ledger for the Accounts Payable account. The auditor must scan future payable transactions to see if they affect the current company outcome.

The case it self provides a series of matters to be attends, these matters have to be address in accordance to the General Accepted Accounting Principles.

Journal Entries: This is the first step in accounting cycle and are used to record all business transactions and events in the accounting system. The role of Journal entries is also to identifying, analyzing and journalizing the transactions as they occurred because if you don 't know a transaction occurred, you can 't record one. This plays an important role in getting the financial statement accurate.

This assignment reviews basic accounting entries for a series of transactions, emphasizes the integration of journals to the financial statements, and introduces students to these journal entries in SAP ERP

Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses Accounts Receivable and Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by letters which journal would be used for each transaction. Also indicate if the entry requires a posting to a subsidiary ledger.

The retained earnings general ledger account is adjusted every time a journal entry is made to an income or expense account

Account is a place where transactions are recorded and Ledger is a place where accounts are maintained.

In addition to accountants providing many useful numbers that signal a company’s performance, they also prepare many useful documents and a code of ethics to make sure that all stakeholders have a clear picture on the business’s financial position. For instance, journaling is what accountants do after every transaction. These entries of what is exchanged in a business provide evidence that money deserves to be in a certain account. Especially since every journal entry needs a corresponding document that proves the record did happen, journals can be used by executives to see what really occurred in case a number in an account looks wrong (Schneider). It is also used when a government official suspects that the company is unfairly representing itself to either indict the business or prove its innocence. Journaling illustrates the importance of accounting since everything is documented and has proof for existence in the case of errors. One thing that journals go hand-in-hand with is the general ledger. This is the document that actually lists each individual account and the amount in it. It organizes the overall picture of every entity a business comes in contact with so that every important number can be put neatly into a financial statement.

Reconciliation of the general ledger to sub-ledgers is not included in the revenue processes of this company. This can be considered a potential weakness. To prevent error in the financial statements, the company should require periodic reconciliation of the general ledger posting to the subsidiary accounts receivable ledger.

|  general journal. (The general journal is used for all transactions that do not get recorded in one of the special journals ("Special Journals").)

General Ledger Reconciliation is the process performed by accountants to verify the integrity of account balances on the company’s general ledger of accounts. It involves comparing the general ledger account balances with other independent systems, statements, and reports, to verify that the balances are correct and accurate; investigating thoroughly any discrepancies that are identified; and taking proper corrective actions to resolve these discrepancies. It is used to verify a company’s financial information before releasing it to the public on financial reports.

General purpose financial statements provides information on the financial position of an entity. Thus it includes information on economic resources and claims against them.

What are financial journal entries? Journal entries are transaction details that are captured on the day that the transaction is conducted in order to maintain accurate financial records. This is one of the basic accounting rules and it helps to ensure that all transactions are recorded as they occur and correct accounting information is maintained. Bragg, (2014) outlines the components that characterize a journal entry and mentions that it basically contains the following information: