Reflection
I have learnt how to use Sage 50; how to recognize and record correct transactions based on source documents; if HST is required, whether it is HST payable or HST recoverable; using accounting principles to check each transaction; correcting errors according to general ledger; I can analyze the difference between balance sheet and income statement.
To begin with, I have learnt how to use Sage 50 to record transactions, and have realized the benefits and drawbacks of using this software. As we have each transaction sheet, we have to recognize the debits and credit account first, and record the corresponding amount into each account. Then we record the source of the transaction, date of the transaction and explain each of the entry.
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If the source document is a cash sales slip, it means that goods or services are sold to a customer for cash. Therefore, bank account will be debited, and sales or revenues will be credited. If it is a sales invoice, the sales of goods or services are on account. The accounts receivable will be debited and sales/revenue will be credited. When the source is a purchase invoice, meaning that the company purchased goods on account, therefore expense or assets account are going to be debited, credit account would be bank. When the source document is a cheque copy, there might be 4 different types of transactions. The first one is the company is paying an account payable; the second is purchasing an assent by cash; the third might be payment for an expense by cash; the last one is owner’s drawing of money for personal use. Consequently, the possible debit accounts that might be influenced could be liability account – accounts payable, asset account, expense account and drawings account. Bank will be credited. Lastly, if it is a cash receipts, meaning the cheques are received from customers on account. Bank will be debited and accounts receivable will be …show more content…
After I have record every entry I found that my net income is off 40350 dollars. It really freaked me out. Then I checked the general ledger, I found after I borrowed $40000 from bank, it became credit balance. I realized that I must have put the debit 40000 in to the wrong account. Thus, I checked, and it was the exact same error as I have thought. Secondly, there was still $350 less than expected. I firstly checked whether I have put the amount into the wrong side or have I missed $350. Eventually, I found it was not simply just putting into the wrong column, but I have selected the false account. I chose to debit equipment account instead of the expense account. Thus, after adjusting these 2 entries, the figures reached the expected
The entries used to record the disposition when the receivables are sold to a factor often detail the cash received plus the service charge. The company can then balance their receivables account. When a credit card company records a credit card
Cash receipts and cash disbursements are from one and only one cash account. New cash accounts are added to the database when they are opened with a deposit. Sometime after this checks can be written from them. Employees are added to the database on the day they are hired (but before they are involved in a purchase or sale, or involved with a vendor). Cash accounts can have many receipts and many disbursements.
Accounting is commonly described as the language of business. It is very important for all business owners to have very good understanding of their finances. Having the knowledge of your business finance, you will know where the money is going. Every business owner should have a good understanding of finance. To have a good understanding business owners needs to understand basic accounting steeps, how does accounting play a role in their business, how to define a financial statement and how the omission of any of these steps would affect the success of a business. Once you have an understanding of accounting/finance and the how it plays
To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a
(TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Go to Course Home and review the Course Project tab. Continue to use the Course Project template from Doc Sharing. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.
‘Cash and cash equivalents’ include certain short-term investments and, in some cases, bank overdrafts. Like IFRS, ‘cash and cash equivalents’ include certain shortterm investments, although not necessarily the same short-term investments as under IFRS. Unlike IFRS, bank overdrafts are considered a form of short-term financing, with changes therein classified as financing activities. The statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. Like IFRS, the statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. The separate components of a single transaction are classified as operating, investing or financing. Unlike IFRS, cash receipts and payments with attributes of more than one class of cash flows are classified based on the predominant source of the cash flows unless the underlying transaction is accounted for as having different components. Cash flows from operating activities may be presented using either the direct method or the indirect method. If the direct method is used, then an entity presents a reconciliation of profit or loss to net cash flows from operating activities; however, in our experience practice varies regarding the measure of profit or loss used. Like IFRS, cash flows from operating activities may be presented using either the direct method or the indirect method. Like IFRS, if
1. How does PPLS create value for its customers? What are the critical risks that it has to manage well?
i – One specific transaction can be captured in the accounting information as input, process and output such as a supplier invoice. This supplier invoice would be initially recorded onto the company’s books when it reaches them, this would be the input. After this, it will be included in the summary of the general ledger accounts after being processed by double entry accounting, this would be the process. Finally, it will be displayed in financial statements such as the balance sheet and this would be the output.
I experienced the same issue when I forgot to select the Net Income in the drop down menu option on question number 7. I also used Figure 5.8A-F as my reference, but I still forgot to include some transactions. I guess double checking is the better way to make sure that all transaction was entered.
I for one, know the benefits of having a personal accountant, will definitely be investing in meeting with one. I would much rather be safe than sorry. I might even just meet with one every few months, just to make sure I am on the right track. This could benefit the business community by avoiding debt, and financials crisis. It would help people be more involved in the business community by allowing people to be able to invest in stocks due to the fact they know are comfortable in their
Examine evidence that the accounts receivable master file to the general ledger for accounts receivable.
The process of recording and posting the effects of business transaction is done in a double entry t-form. The total dollar amount of debits must equal the total dollar amount of credits, with debits to the left and account credit to the right. Broken down, Assets = Liabilities + Stakeholder Equity. “Since debits increase assets, expense, and dividend accounts, they normally have debit balances. Conversely, because credits increase liability, capital stock, retained earnings, and revenue accounts, they normally have credit balances.”( Edwards, J. D., Hermanson, R.H., & Maher, M. W. (2011). p.84)
What risk management and procurement tools and techniques have you used prior to taking this course?