Professional Documents
Culture Documents
Training
Module September 2008
Source
Transaction documents Analysis
or event
Reporting
Trial balance Recording &
posting
Training Workshop for Accounts Officers/Tellers
Source Documents
Checks Purchase
Orders
Bank
Statement
Sales
Invoices
+ + + –
Common
Common Retained
Retained Revenues
Revenues Expenses
Expenses
Stock
Stock Earnings
Earnings
Accounts
Accounts Prepaid
Prepaid
Receivable
Receivable Expenses
Expenses
Office
ASSETS
ASSETS
Office
Supplies
Supplies Land
Land
Store
Store
Supplies Buildings
Buildings
Supplies
Equipment
Equipment
Training Workshop for Accounts Officers/Tellers
LiabilityAccounts
Accounts
Accounts Notes
Notes
Payable
Payable Payable
Payable
LIABILITIES
LIABILITIES
Accrued
Accrued Unearned
Unearned
Liabilities
Liabilities Revenues
Revenues
Balance of an Account
An account balance is the difference between
the increases and decreases in an account.
Double-Entry Accounting
Assets
Assets = Liabilities
Liabilities + Equity
Equity
ASSETS LIABILITIES EQUITIES
of Effects on Equity
Retained
Retained _ Dividends _
Earnings
Earnings
Dividends
+ Revenues
Revenues Expenses
Expenses
Step 1: Examine
source documents. Step 2: Analyze
transactions.
Step 1: Examine
source documents. Step 2: Analyze
transactions.
Transaction
Transaction
Dollar
Dollar amount
amount of
of
explanation
explanation debits
debits and
and credits
credits
Training Workshop for Accounts Officers/Tellers
Balance Column Ledger
T-accounts are useful illustrations, but
balance column ledger accounts are used
in practice.
1
Identify the account.
4
Enter the journal reference.
6
Enter the ledger reference.
Income Statement
Inflows
Inflowsof
ofassets
assetsin
in
exchange
exchangefor
for
products
productsand
and
services
servicesprovided
providedtoto
customers.
customers.
Outflows
Outflowsor orthe
the
using
usingup upof
ofassets
assets
that
thatresult
resultfrom
from
providing
providing
products
productsandand
services
servicestoto
customers.
customers.
Balance Sheet
Assets
Assetsare
areeconomic
economicresources
resourcesowned
ownedby byaa Liabilities
Liabilitiesare
are
business.
business. They
Theyare
areexpected
expectedto
toprovide
providefuture
future obligations
obligationsof ofthe
the
benefits
benefitsto
tothe
thebusiness.
business. business.
business. They
They
are
areclaims
claimsagainst
against
the
theassets
assetsof ofthe
the
business.
business.
Equity
Equityis isthe
theowner’s
owner’s
claim
claimononthe
theassets
assets
of
ofthe
thebusiness.
business.ItItisis
the
theresidual
residualinterest
interest
in
inthe
theassets
assetsafter
after
deducting
deductingliabilities.
liabilities.
Describes
Describes
the
the
sources
sources
and
and uses
uses
of
of cash
cash
for
for aa
reporting
reporting
period.
period.
Generally,
Generally, dollar
dollar signs
signs ($)
($) are
are
ACCOUNT NAME: ACCOUNT No. not
not used
used in
in the
the journals
journals or
or
ledgers.
Date Description PR Debit Credit Balance
ledgers.
Round
Round numbers
numbers in in financial
financial
Rounding
Rounding statements
statements to
to the
the nearest
nearest dollar.
dollar.