This provides information on how to record financial transactions on the general ledger and journals and more is given Check and follow me for more info on Financial accounting
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INTRODUCTION TO FINANCIAL ACCOUNTING
UNIT 2: RECORDING FINANCIAL
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TRANSACTIONS
OUTCOMES FOR TODAY’S WEBINAR
• Explain the purpose of a general journal and general ledger
• Record and post transactions pertaining to cash sales and cash purcha
• Record and post transactions related to credit sales and credit purcha
• Record and post transactions pertaining to the purchase and sale of n
current assets
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INTRODUCTION TO FINANCIAL ACCOUNTING
UNIT 2: RECORDING FINANCIAL
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TRANSACTIONS
• GENERAL JOURNAL AND LEDGER
• GENERAL JOURNAL: may be used as a book to record all transactions
before posting to the general ledger.
• The DOUBLE ENTRY PRINCIPLE is followed when recording is done.
• For every debit entry there is a corresponding credit entry.
• Asset accounts are debited with an increase.
• Equity and liability accounts are credited with an increase.
• Equity is affected by changes to capital, drawings and profit (resultin
from income and expenses).
• Thus capital and income accounts are credited with an increase (they
increase equity).
• Drawings and expense accounts are debited with an increase (they
decrease equity).
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INTRODUCTION TO FINANCIAL ACCOUNTING
UNIT 2: RECORDING FINANCIAL
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TRANSACTIONS
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