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Journalising Transaction 01.28.2020 (E)
Journalising Transaction 01.28.2020 (E)
What is
financial
Cost Accounting:
accounting?
Foundations and Evolutions, 8e
Kinney ● Raeburn
CORE QUESTIONS
What is its
value for me?
Cost Accounting:
Foundations and Evolutions, 8e
Kinney ● Raeburn
Learning objectives:
Understand how accounting relates to real business
world;
Cost Accounting:
Foundations and Evolutions, 8e
Financial accounting is sometimes referred to as
external financial reporting due to its focus on
Kinney ● Raeburn
Liabilities
Assets = +
Cost Accounting: Capital/Equit
Foundations and Evolutions, 8e
y
Kinney ● Raeburn
Account Titles
• are the names given to the various
categories used to keep track of a
businesses transactions.
Cost Accounting:
Foundations and Evolutions, 8e
Kinney ● Raeburn
Chart of Accounts
Cost Accounting:
• Credit =Foundations
from Latinand
wordEvolutions, 8e entrust);
credere (to
translated
Kinney ● Raeburn as “Value Parted
With”
This means that….
Cost Accounting:
Foundations and Evolutions, 8e
Kinney ● Raeburn
2nd step
Journalising
Cost Accounting:
transactions
Foundations and Evolutions, 8e
Kinney ● Raeburn
Journalising -
Recording of business transactions in
a systematic manner and in the
order of their occurrence in the
book of original entry call JOURNAL
BOOK.
TYPES OF JOURNAL
ENTRY
AWith
. SIMPLE ENTRY
one debit and one credit.
B. COMPOUND ENTRY
With 1 debit and 2 credits;
With 2 debits and 1 credit;
With 2 or more debits and credits;
HOW IS IT DONE?
Sample Transaction: