(Types)
The two types of Books of Accounting
Journal and Ledger
What is the first step in the Accounting Cycle?
Identifying of business transactions
State the Accounting Equation
(Assets = Liabilities + Equity)
Give the four types of Special Journal
Cash Receipt Journal, Cash Disbursement Journal, Sales Journal, and Purchase Journal
The Second step in the accounting cycle is
Journalizing
TRUE OR FALSE
T-Account is a representation of the general ledger account used in teaching accounting
TRUE
Define what is a 'Ledger'
It is the book of Final Entry
The third step in the accounting Cycle is
Posting
The Normal Balance of Liabilities and Equity is CREDIT
TRUE
What are the different types of Journal?
General journal and Special Journals
What comes after you have prepared the Adjusted Trial Balance
Preparation of Financial Statements/Reports
Journalize the transaction:
Company was able to collect P890,000.00 from its receivables.
Cash P890,000.00
Accounts Receivables P890,000.00
Why do we use Special Journals?
To record the same transactions and eliminate redundancy.
Differentiate the Subsidiary and General Ledger
Subsidiary Ledger Tracks detailed information for individual accounts, such as customer accounts or vendor accounts whereas General Ledger Serves as the main ledger containing all the financial transactions of a company.
Why do we use ledger?
To classify accounts and use to create trial balances, financial statements, and to ensure the accounting equation is balanced.