General Journal A general journal is a journal used for the keeping of records for financial transactions in chronological order. The general journal is also referred to as the book of original entry. Along with the general journal, there can also be specialty journals. Specialty journals are those in which you record specific types transactions. The four main specialty transactions are sales, cash receipts, purchases, and cash disbursements. All of the financial transactions are recorded in debit and credit format. Each entry into the general includes date, amount, account names involved, and a short narration of the transaction. When entering these transactions it is important that both the total of debit and the total of credit are equal to each other. General Ledger A general ledger is the main accounting records with a complete record of financial transactions within a business. The general ledger is also known as the book of final entry. All recorded transactions are related to the business 's assets, liabilities, owner 's equity, revenue, gains, losses and expenses. Businesses can opt to either use a physical general ledger and/or electronic general ledger. Many businesses in this era choose to have an electronic general ledger as opposed to a physical general ledger, due to the amount of paperwork required. In relevance to the general ledger, posting also occurs. Posting is the process of transferring the debits and credits from the general journal. Just like the
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 price and cost list on the next page reflects the current selling prices and costs for Waren’s twelve products. Waren purchases all products for resale from one vendor, Super Electric Company. Waren sells each inventory item at the same price to all customers. A new price and cost list is prepared each time there is a change in an item’s cost or selling price.
Due to the electronic transfer of data from the POS to the general ledger, this module requires minimal manual data entry (Accounting System Overview, 2011).
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.
Record-keeping and book-keeping is the disciplined and orderly practice of storing financial loss, gain, producing invoices, depositing incoming cash and checks, tracking donations and work purchased items. Business
The journal is about the factor that inflecting students get in the accounting major. In the journal they did a survey to find out what makes those students choosing accounting as their major. This journal provides me the idea of how many accounting graduates are needed and how it affects the major to be impacted due to the high percentage of students who are interested in the major. There are 64% of students said that they choose it because of their high school accounting class or their first accounting class in college brought them interest, 24% is they love math and the other 12 % is because their family members are accounting major. The survey next attempted to determine the impact of students' first college financial accounting course
The financial connections with customers who use output of the organization are handled through Accounts receivable (AR). This maintains personal accounts of the creditors and maintain various sub-ledgers such as control accounts, payments etc. as a part of General Ledger (GL).
Maintaining General Ledger, Sundry Creditors ledger, Industries Bank Book, Purchase Journal, General Journal, Pre-paid register, Purchase orders file, Goods in Transit Register, Outstanding liabilities register, Salaries, wages & amenities register, Salary advance register, Advance to supplier, Motor cycle & house building register, Bank transfer and clearing register.
According to J.R. Batliboi , “The ledger is the chief of accounts and it is in this book that all the business transactions would ultimately find their place under their accounts in a duly classified form.”
This includes the classes of transactions pertinent to an entity’s operations and the procedures taken to capture transactional information and other events and conditions. Supporting accounting records may also be inspected along with inquiries as to how incorrect transactions are corrected. Auditors must also be aware of their client’s processes in preparing financial statements, such as closing entries, accounting estimates, and disclosures.
Financial statements are the core component of financial reporting and contain sections or elements outlined in FASB SFAC Concept No. 6. In order for data or information to be contained within the financial statements it must go through a formal process of recognition. An element that is included in the financial statements will be qualitative and quantitative and must meet the formal definition of either an asset or liability. A change in equity must meet the definition of a revenue, expense, gain, or loss to be recognized as a component of comprehensive income. (Concepts Statement No.4, p.26) The element must also contain aspects of relevance and reliability, as covered in Concept No. 2, in addition to measurability. Measurability states that an element must be counted or identified as a monetary unit, in most cases a specific currency. Once the currency has been established, measurability must account for specific attributes to be included in the asset and liabilities sections of the financial statements.
* To manage and document financial accounts. This includes creating and managing financial records, performing and documenting financial transactions, and submitting official documents.
The book keeping process involves making a record of the monies received by a business as well as the monies paid out. It encompasses money a company owes to vendors, employees, tax agencies, contractors, and any other individual or entity. Likewise, accurate records of amounts owed to a company by outside individuals and