Introtoacclecture3

Introtoacclecture3 - Introduction to Accounting Module 3...

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Introduction to Accounting Module 3 Accounting Systems 1
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CHAPTER 7 Accounting systems
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Most businesses have several repetitive classes of transactions Sales, Purchases, Cash Receipts and Cash Payments Based on this a more streamlined and efficient accounting system can be created Also useful when a large amount of detailed information is required (eg. customer order and payment details) Computerised accounting systems often use a similar ‘modularised’ approach 3 EFFICIENT ACCOUNTING SYSTEMS
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Group like transactions together into “special journals” and “subsidiary ledgers” Similar transactions are first recorded into special journals (instead of the general journal) Those special journals are posted to subsidiary ledgers (instead of general ledger accounts) At the end of the month, one entry is posted to the general ledger “control account” – we post the totals of all transactions in the special journals (instead of individual entries) 4 EFFICIENT ACCOUNTING SYSTEMS
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General journal inefficient where there are many transactions Group like transactions and record in a special journal 5 MANUAL ACCOUNTING SYSTEMS SPECIAL JOURNALS Category of Transaction Special Journal Sales of inventory on credit Sales Journal Purchases of inventory on credit Purchases Journal Receipt of cash (all receipts) Cash Receipts Journal Payments of cash (all payments) Cash Payments Journal
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  • Two '15
  • Accounting, Accounting software, Purchases Journal, special journal

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