cma_Accounting_information_system_

Jps dircom wwwjps identfy measure transaction and

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Unformatted text preview: ublished on www.jps-dir.com www.jps- identfy & measure transaction and event transaction and event used to descibe the changes in an entity assets.liabilty & owners equity Events are of two types: A) external : involve interaction between an entity & its environment B) internal events : occur within an entity transaction : are particular kind of external events maybe an exchange in wich entity both receives & sacrifice value journalizing : General Ledger: It is a collection of all assets, liability,stockholders equity , revenue and expenses account. T-Account is a convenient method of illustrating the effect of trasaction on particular assets , liability, equity,revenue, expense eg: Depreciation expense $ 500 Accumulated depreciation- Office expence DE. $ 500 Depreciation expense Depreciation expense DE. CR $500 ACCUMULATED DEPRECIATION Accumulated depreciation – Office expense CR. $500 A subsidiary ledger is a group of accounts with a common characteristic, e.g., all are customer accounts, that is, all are accounts receivable. The subsidiary ledger facilitates the – -: -0105030092 : 0502265272 e-mail:.[email protected] : < =>? @ 8 A 35 8 9 : : ; -: 6 7 WWW.AHSCADA.COM 0124059666- 034851600- 034865655 : L ;M NO :L ;M Accounting Accounting House House 4 published on www.jps-dir.com www.jps- recording process by freeing the general ledger from the details of individual balances. Thus, a typical merchandising enterprise has subsidiary ledgers containing accounts with customers (accounts receivable or customers’ ledger) and creditors (accounts payable or creditors’ ledger). the advantages of using subsidiary ledgers are that they: 1. Show transactions affecting one customer or one creditor in a single account, thus providing necessary up-to-date information on specific account balances. 2. Free the general ledger of excessive details relating to accounts receivable and accounts payable. As a result, a trial balance of the general ledger does not contain vast number...
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