AOS1 KK2 General Ledger

Question 1

Single Entry Accounting

Answer 1

the process of recording transactions in journals and then using the summarised information to prepare reports.

-Cash Receipts Journal
-Cash Payments Journal
-Sales Journal
-Purchases Journal

Question 2

Double Entry Accounting

Answer 2

a system that records two effects on the accounting equation as a result of each transaction.

1. Every transaction will affect at least two items in the accounting equation: a double entry.
2. After recording the changes, the accounting equation must still balance.

Question 3

Double Entry Accounting System

Answer 3

1. Financial Data
   2.Source Documents
   3.Genera Journal
   4.General Ledger
   5.Pre-adjustment Trail Balance
   6.Balance Day Adjustment
   7.Post-adjustment Trail Balance
   8.Closing the Ledger
   9.Financial Reports

Question 4

General Ledger

Answer 4

The General Ledger: The collective name for all Ledger accounts.

The purpose of a ledger account is an Accounting record showing all the transactions that affect a particular item.

Question 5

Rules to record Transcation in the General Ledger

Answer 5

Step 1: Determine the two (or more) ledger accounts that affected: e.g. Bank & Accounts Payable

Step 2: Classify the ledger accounts affected (Asset, Liability or Owner’s Equity)

Step 3: Ask yourself, is the account being increased or decreased?

Step 4: By referring to the rules of DR and CR, state whether the accounts will have a debit or a credit entry