Professional Documents
Culture Documents
Accounting Systems
Student Version
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Accounting System
An accounting system is the
methods and procedures for
collecting, classifying,
summarizing, and reporting a
business’s financial and
operating information.
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Feedback
Once a system has been
implemented, feedback,
or input from the users
of the information can
be used to analyze and
improve the system.
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Internal Controls
Internal controls are policies
and procedures that protect assets
from misuse, ensure that business
information is accurate, and
ensure that laws and regulations
are being followed.
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Processing Methods
Processing methods are the means
by which the system collects,
summarizes, and reports
accounting information. These
methods may be either manual or
computerized.
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Subsidiary Ledger
A large number of individual
accounts with a common
characteristic can be grouped
together in a separate ledger
called a subsidiary ledger.
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General Ledger
The primary ledger, which
contains all of the balance
sheet and income statement
accounts, is called a general
ledger.
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Controlling Account
Each subsidiary ledger is
represented in the general
ledger by a summarizing
account, called a controlling
account.
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Special Journal
Each special journal
is designed to be used
for recording a single
kind of transaction
that occurs frequently.
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Special Journals
SELLING
Providing services on account
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Special Journals
BUYING
Purchase of items on account
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General Journal
The all-purpose two-column
journal, called the general journal
or simply the journal can be used
for entries that do not fit into any
of the special journals.
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Exhibit 3
Revenue Journal
Postings to Ledger
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Exhibit 4
Cash Receipts
Journal and
Postings
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Accounts Receivable—(Controlling)
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Purchases Journal
The purchases journal is
designed for recording
all purchases on account.
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Exhibit 5
Purchases
Journal and
Postings
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Exhibit 6
Cash Payments
Journal and
Postings
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Accounts Payable Control
Account and Subsidiary Ledger
Accounts Payable (Control)
Balance, March 1, 2010 $1,230
Total credits (from purchases journal) 6,230
Total debits (from cash payments journal) (5,050)
Balance, March 31, 2010 $2,410
NetSolutions
Supplier Balance Summary Report
March 31, 2010
Donnelly Supplies $1,450
Grayco Supplies 0
Howard Supplies 960
Jewett Business Systems 0
Total $2,410
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Computerized
Accounting System
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Revenue and Cash Receipts in
Exhibit 7
QuickBooks© (continued)
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e-Commerce
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