A yes but the profit a business makes belongs to its

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A. Yes but the profit a business makes belongs to its shareholders. If a bank has cash in the vault or owns deposits elsewhere which result from higher earnings than costs (i.e. profit) these will appear in the books as assets. Any profits that have been made are also immediately a liability that the business has to its owners the moment the profit is made, so if the book recording profits which the business owes to share- holders is kept up to date then all the books should still balance.
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DEB FAQs 3 Q. What happens if a business makes a loss ? A. To start with, a business needs investment. This as- set is capital the business can use to launch opera- tions before it starts making a profit. In the liabilities book this is what the business owes to its owners and creditors. A business becomes insolvent when its liabilities ex- ceed assets to the extent creditors have to reduce ex- pectations of what the business can pay back, so after these adjustments are made the books still balance.
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Banking records and data processing 1 Accounting master file This will contain each customers current balance, pre- vious transactions over a certain period, and a carry forward amount for the start of this period. Ledgers These track assets such as cash on their way through the system.
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Banking records and data processing 2 Journals These track transaction inputs from check sorters, cash machines etc. not yet input into ledgers. Audit trail This records which member of staff did what and when.
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Banking records and data processing 3 Batch Processing A set of programs runs in sequence at the end of a day's busi- ness, to input data from the various journals to update the rel- evant ledgers. An example might be a cash deposit by a cus- tomer into a savings account. The relevant journals should include deposits into savings accounts and cash in and out of the till. After all the inputs have been used to update the ledgers, all the asset and liability ledgers should still balance. If they don't this indicates an error which is investigated. The order in which batch programs are run can influence the outcome, e.g. making payments into accounts occur before payments out of them reduces the risk of overdrafts.
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Banking records and data processing 4 Transaction Processing The reason for having seperate journals and ledgers is that this enables a batch to be rerun based on the same starting state if a failure occurs prior to batch completion. Backup copies of all files have to be taken before a batch job is started, and these files determining the starting state of the system will be restored prior to a rerun. Software engineers describe the approach to data processing where a set of related updates either complete as a unit or are rewound to the starting state as transaction processing . Pre- venting accidental discrepancies and maintaining the security of the system are intimately connected concerns.
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Seperation of Duties If double entry books are kept by different clerks, or com- puters, or sandboxed processes, containers or virtual ma- chines under the control of different administrators, this leads
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