Accounting Fundamentals In Society ACCY111
Week 3 LECTURE NOTES - Recording Transactions in the General Journal
Chapter 3
Accounting cycle
Transactions
Double entry accounting
Debit and Credit Rule
General journal
What is Accounting Cycle?
Steps and procedures, ending in the preparation of financial statements, are
referred to as the accounting cycle.
During each period, steps and procedures are followed within the accounting
function to ensure that all transactions are properly recorded.
Basic accounting period for which financial statements are presented is 1 year (e.g.
1 July 2021-30 June 2022)
TRANSACTIONS
External Transactions
o Involve an outside party
o Exchange of economic resources and/or obligations
o Examples include:
purchase of surfing supplies
purchase of equipment
borrowing money from a bank
the performance of services for others (e.g. medical, legal,
cleaning, marketing, public relations)
Week 3 LECTURE NOTES - Recording Transactions in the General Journal
Chapter 3
Accounting cycle
Transactions
Double entry accounting
Debit and Credit Rule
General journal
What is Accounting Cycle?
Steps and procedures, ending in the preparation of financial statements, are
referred to as the accounting cycle.
During each period, steps and procedures are followed within the accounting
function to ensure that all transactions are properly recorded.
Basic accounting period for which financial statements are presented is 1 year (e.g.
1 July 2021-30 June 2022)
TRANSACTIONS
External Transactions
o Involve an outside party
o Exchange of economic resources and/or obligations
o Examples include:
purchase of surfing supplies
purchase of equipment
borrowing money from a bank
the performance of services for others (e.g. medical, legal,
cleaning, marketing, public relations)
