Kế toán, kiểm toán - Chapter 2: Double entry bookkeeping

Chapter 2 Double entry bookkeeping1 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by ObjectivesExplain the principles of the double entry bookkeeping system.State the rules of debit and credit for each group of accounts.Describe the flow of information through an accounting system.2 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Objectives (continued)Explain the nature and purpose of journals and their relationship to the ledger.Explain the nature and purpose of a ledger.Record a variety of business transactions in appropriate ledger accounts.Explain the nature and purpose of a Trial Balance.3 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Double entrySome examples of double entry are :using cash to purchase a motor vehiclea debtor paying an accountpaying cash to a creditorthe owner withdrawing assets from the business.4 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Double entry (continued)There are at least two entries for each transaction: an amount is recorded as a debit with a corresponding amount being recorded as a credit.Double entry transactions are entered into all Journals.5 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Debit and credit rules6 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Flow of informationSource documents:sales invoicespurchase invoicescash register tapescheque buttscredit notes.7 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Flow of information (continued)Types of journals:general journalspecialised journals.8 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Flow of information (continued)Types of ledgers:general ledgerssubsidiary ledgers.9 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Flow of information (continued) The Trial Balanceshows all the balances of the accounts in the General Ledgeris the basis for the preparation of the financial statements.The Statement of Financial Performanceshows the financial performance of the business.10 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Flow of information (continued)11 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Functions of a journal:categorises similar items togetherprovides a permanent record of the transactionclassifies items into debit and creditassists in posting transactions to the ledger.12 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Cash receipts journal13 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Cash payments journal14 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Sales journal15 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Purchases journal16 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Sales and purchase return17 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by General journal18 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by LedgersT ̵ Account19 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Ledgers (continued)Columnar format20 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by Trial Balance Trial Balance assists in finding: arithmetic error recording only half of an entry.21 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting for Business – A non-accountant’s guide 2/e by