Accounting information

Information content:
1.Source Documents
 Receipts
 Cash register slip (crs)
 Sales invoice
 Supplier invoice
 Cheque butt
 Credit note issues to customer
 Credit note raise by supplier
2.Journal for cash transaction
 Introduction
 Functions of journal
 Types of journal
 Special journal
 Cash receipts journal
 Cash payment journal
3.Journal for credit sale and purchases
 Introduction
 Sales journal
 Sales return and allowances journal
 Purchases journal
 Purchases return and allowances journal
4.Accounting for GST
 Purchases
 Purchases return and allowances
 Purchases journal with GST column
 Purchases return and allowances with GST column
 Sales
 Sales return and allowances
 Multiple column cash receipt journal with GST column
 Multi column cash payment journal with GST column
 Sales journal with GST column
 Sales return and allowances with GST column
5.Bank reconciliation
 Introduction
 Bank reconciliation statement
 Steps involved in the preparation of bank reconciliation statement
 Preparation of bank reconciliation after operation of first month
 Preparation of bank reconciliation statement in subsequent months
 Preparation of bank reconciliation statement with bank overdraft
 Preparation of bank reconciliation statement without adjusting cash journal
 Dishonored cheques
1.Source Documents
A source document is a document which provides details of transaction information for accounting.
Two basic purpose of source document
 Provide written evidence of transaction
 Giving particulars/items of transaction to be recorded
Examples of source document,
Receipts- is document that confirmed certain amount of money received from the debtor.
Cash register slip (tape)- summary of cash received in a day
Sales invoice- good sold on credit source document raise by seller
Supplier invoice- Goods purchases on credit source document from supplier (seller)
Cheque butt – portion of cheque retained for future reference
Credit note issued to customer – source document indicating that seller amount owed from faulty good
return from customer
Credit note raise by supplier – source document indicating that seller amount owed reduced when faulty
good return (allowances) to credit supplier (credit customer)

2.Journal for cash transaction

Journal is the record of original entry, which collects and summarize information from similar source
document
2.1 function of journal
a.help posting to ledger
b. Order of transaction occurred
c. Easy reference for ledger and source document
b. avoiding of unnecessary details
2.3 types of journal
a. Special journal
b. General journal
2.3.A . Special journal
Special journal, is a journal maintain for special type of transaction and even
Special journals
1.cash receipts journal – source document (cash receipts, cash register slip or tape)
2.cash payment journal -source document (cheque butt)
3.Journal for credit sales and purchases
Original entry of credit sales and purchases
Types of journals
Sales journal – source document (sales invoice)
Sales return and allowances journal – source document (seller’s credit note)
Purchases journal – source document ( supplier invoice)
Purchases return and allowances journal – source document (supplier’s credit note)
3.Accounting for GST
Every business used to have GST input and output collection on behalf of IRC
Formula:
GST collected - GST paid to supplier(GST = Net GST payable to IRC (Net Amount)
From sales (GST claimable)
Payable)
Eg. 5000 – 1500= 3500
1.multi-column cash receipts journal with GST column
Format
Date Particulars Folio Receipt Trade Cash GST Sundry Bank
s No. Debtor Sales
(k)

2.Multi-column cash payment journal with GST column

Date Particulars Folio Cheque Trade Cash GST (k) Sundry Bank
No. Creditor Purchases
(k) (k)

1.Sales
Transaction Account Debited Account Credited
Cash sales Cash at bank account (gross value 1.sales account (net of GST)
GST control account (GST component)
Credit sales Debtors account (gross value) Sales account (net of GST
GST control account (GST component)

2.Sales returns and allowances

Transaction Account Debited Account Credited
Sales returns and allowances 1.Sales returns and allowances account Debtors account (gross amount)
(net of GST)
2.GST control account (GST component)

Sales journal with GST column

Date Debtors Folio Invoice No. Sales (K) GST (K) Total (K)

Sales returns and allowances journal with GST column

Date Debtor Folio Credit note Sales GST (K) Total (K)
no. returns (K)

1.Purchases
Transaction Account Debited Account Credited
Cash purchases Purchases account (net of GST) Cash at bank account (gross
GST control account (GST value)
component)
 Credit purchases Purchases account (net of GST) Creditor account (gross value)
GST control account (GST
component)

2.Purchases returns and allowances

Transaction Account Debited Account Credited
Purchases returns and Creditors account (gross value) 1.purchases returns and
allowances allowances account (net of GST)
2.GST control account (GST
component)

Purchases journal with GST column

Date Creditor Folio Invoice No. Purchases GST (K) Total (K)
(K)

Purchases returns and allowances with GST column

Date Creditor Folio Invoice note Purchases GST (K) Total (K)
no. returns (K)