tailieunhanh - Lecture Accounting for business: A guide for non-accountants (2/e) – Chapter 2: Double entry bookkeeping

The learning objectives for this chapter include: Explain the principles of the double entry bookkeeping system, state the rules of debit and credit for each group of accounts, describe the flow of information through an accounting system,. | Chapter 2 Double entry bookkeeping 2 - The processing of accounting entries is done by double entry recording. There is two entries into a journal. These entries must balance. Objectives Explain the principles of the double entry bookkeeping system. State the rules of debit and credit for each group of accounts. Describe the flow of information through an accounting system. 2 - Objectives (continued) Explain the nature and purpose of journals and their relationship to the ledger. Explain the nature and purpose of a ledger. Record a variety of business transactions in appropriate ledger accounts. Explain the nature and purpose of a Trial Balance. 2 - Double entry Some examples of double entry are : using cash to purchase a motor vehicle a debtor paying an account paying cash to a creditor the owner withdrawing assets from the business. 2 - Entity assumption - business and owners financial dealings are recorded separately. Double entry (continued) There are at least two entries for each transaction: an amount is recorded as a debit with a corresponding amount being recorded as a credit. Double entry transactions are entered into all Journals. 2 - In every transaction there are two effects, generally with one resource increasing and one decreasing For every debit there must be a corresponding credit These entries are recorded in the general journal with the debits on the left and credits on the right. Debit and credit rules 2 - Note: Students always think of a bank statement and therefore get confused that credit is good and debit is bad. Advise the student that financial reports are from the perspective of the reporting entity, therefore the credit of their money in the bank is a liability from the banks perspective and that if that entry was recorded in the individuals statements it would be a debit. Flow of information Source documents: sales invoices purchase invoices cash register tapes cheque butts credit notes. 2 - Substantiate . | Chapter 2 Double entry bookkeeping 2 - The processing of accounting entries is done by double entry recording. There is two entries into a journal. These entries must balance. Objectives Explain the principles of the double entry bookkeeping system. State the rules of debit and credit for each group of accounts. Describe the flow of information through an accounting system. 2 - Objectives (continued) Explain the nature and purpose of journals and their relationship to the ledger. Explain the nature and purpose of a ledger. Record a variety of business transactions in appropriate ledger accounts. Explain the nature and purpose of a Trial Balance. 2 - Double entry Some examples of double entry are : using cash to purchase a motor vehicle a debtor paying an account paying cash to a creditor the owner withdrawing assets from the business. 2 - Entity assumption - business and owners financial dealings are recorded separately. Double entry (continued) There are at least

• Kế toán - Kiểm toán
• Accounting for business
• Lecture Accounting for business
• Double entry bookkeeping
• Flow of information
• Ledger accounts
• Recording transactions
• Payroll accounting
• Pay period
• Payroll taxes
• Financial Statements
• Making business decision
• Business decision tool
• Lecture Accounting