To understand the process imagine that you purchase a

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Unformatted text preview: $600 in cash and $1200 store credit. An example of a General Journal entry for this transaction is shown in Figure 2. Notice that the purchase of one item required an entry for three different accounts. You can see the name of each account under “description” and the number of the account under column ‘F.’ The General Journal is kept in chronological order, which can be very helpful if you need to look back over the history of your transactions. Download free ebooks at 20 Financial Information Related to the Budget Managing Budgets However, there is one glaring piece of information that is missing on the General Journal. You don’t see any information about the balance in each account that you have impacted. For example, just by looking at the General Journal, you don’t have any idea how much cash you have left after the purchase of the computer. To track the changes in account balances, your accounting team uses a General Ledger. FY20XX Debit Equipment 144 1,800 101 600 Accounts Payable 22 F Cash Nov Description Credit 200 1,200 Purchase of Computer with $600 cash and $1200 store credit Figure 2: Example of General Journal Entry your chance Please click the advert to change the world Here at Ericsson we have a deep rooted belief that the innovations we make on a daily basis can have a profound effect on making the world a better place for people, business and society. Join us. In Germany we are especially looking for graduates as Integration Engineers for • Radio Access and IP Networks • IMS and IPTV We are looking forward to getting your application! To apply and for all current job openings please visit our web page: Download free ebooks at 21 Financial Information Related to the Budget Managing Budgets 3.5 The General Ledger The General Ledger is organized by ledger accounts. There is one ledger account for each account in your Chart of Accounts. The accountant will take the information from the General Journal and post...
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This note was uploaded on 06/07/2013 for the course BA 201 taught by Professor Cuongvu during the Fall '13 term at RMIT Vietnam.

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