Beruflich Dokumente
Kultur Dokumente
LEARNING OUTCOMES
At the end of the session, students are able to: Identify the accounting cycle in recording process, Balancing off ledger accounts, and Prepare a Trial Balance.
ACCOUNTING CYCLE
In practice a more efficient and orderly system is used in recording daily business transaction. The basic steps in the recording process constitute the accounting cycle.
ACCOUNTING CYCLE
(1) Business transactions (2) Recorded in journals
(2) JOURNAL
Also known as a book of original entry. The journal is like a diary where daily business transactions are recorded in order of date (chronological order). There are various types of journals but the most basic form is known as general journal.
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BersihMurni Services
ADVANTAGES OF JOURNAL
Based on double entry system, each transaction affects at least 2 (two) accounts. Therefore, the 2 (two) accounts are easily identified and linked through the journal entry because each journal entry shows the complete effect (debit and credit entries) in one place.
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(3) LEDGER
Journal entries must be posted to the appropriate accounts in the ledger. Posting refers to procedure of transferring information from the journal to the ledger accounts. Individual ledger accounts will indicate the position of a particular item.
How much cash balance. How much amount owing to creditor.
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Cash Account
1 April Capital J1 35,000 No.42 Capital Account April 1 Cash J1 35,000
22,000
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CHART OF ACCOUNTS
To keep track of accounts, most businesses have a chart of accounts. It lists all the accounts and their account numbers. The account numbers assigned to each account are used to identify and locate each account in the ledger. It is much more easier and faster for having numbering system.
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CHART OF ACCOUNTS
100 Assets 101 Cash 102 Debtors 103 Stock 104 Motor vehicle 105 Office equipment 400 Revenues 401 Service revenues 402 Sales 500 Expenses 501 Supplies 502 Salaries 503 Rent 504 Water and electricity 200 Liabilities 201 Creditors 202 Loan 300 Owners equity 301 Capital 302 Drawings
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TRIAL BALANCE
BersihMurni Services Trial Balance as at 31 July 2010 Debit (RM) Cash Cleaning equipment Motor vehicle 9,650 26,000 30,000 Credit (RM)
Bank loan
Cuci Enterprise Capital Drawings Cleaning supplies Salaries Cleaning service revenue 73,450 2,500 2,100 3,200
30,000
2,000 35,000
6,450 73,450
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EXERCISES
Bengkel Motor Atan began operation on 1 July 2010 with RM20,000 cash as capital. The following are the transactions that took place for the first month of business. Date Transaction
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EXERCISES
Eusoffe Trading
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