Chapter 3Accounting Recordsand SystemsWHUTAccountingdepartmentofmanagementschool
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Chapter 3 Accounting Records and Systems
Learning ObjectivesThe nature of the account and entriesRecord transactions in a journal and postentries to a ledgerDefine debits and credits and explaintheir role in double-entry accountingThe closing processWHUTAccountingdepartmentofmanagementschool
McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Learning Objectives The nature of the account and entries Record transactions in a journal and post entries to a ledger Define debits and credits and explain their role in double-entry accounting The closing process
1.Analyzing and Recording1ProcessAnalyze eachRecordrelevanttransactionandeventtransactionsandfrom sourceeventsinajournaldocumentsPost journalPrepareinformation tofinancial reportledgeraccountsWHUTAccountingdepartmentofmanagementschool
McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Analyze each transaction and event from source documents 1.Analyzing and Recording Process Record relevant transactions and events in a journal Post journal information to ledger accounts Prepare financial report
Source DocumentsBills fromChecksPurchaseSuppliersOrdersEmployeeEarningsRecordsBankStatementsSalesTicketsWHUTAccountingdepartmentofmanagementschool
McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Sales Tickets Bank Statements Purchase Orders Checks Source Documents Bills from Suppliers Employee Earnings Records
12. The Account and its AnalysisAnaccountis arecord ofThe generalincreasesandledgerisarecorddecreases in acontaining allspecific asset.accountsusedbyliability, equitythe company.revenue,orexpense item.WHUTAccountingdepartmentofmanagementschool
McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. 2. The Account and its Analysis The general ledger is a record containing all accounts used by the company