Month: January 2022

These types of errors are reflected on the trial balance because the debits will not be same as the credits. The debits may be more than the credits and vice versa. Examples include: 1. Transaction is posted on one side Read More …

The trial balance produced from the accounts appears to be okay/correct, i.e the debits are the same as the credits. However, on taking a close check on the balances and transactions posted, errors may have been made and therefore the Read More …

Introduction Control accounts are so called because they control a section of the ledgers. By control we mean that the total on the control accounts should be the same as the totals on the ledger accounts. There are two main Read More …

The ledger is simply the accounts. The Ledger is classified into 3 main classes. 1. Sales Ledger, which has the accounts of all the debtors. 2. Purchases Ledger, which has the accounts of all the creditors. 3. The General Ledger. Read More …

It records information from other correspondence (information that is not recorded in the above books of prime entry). It explains the type of entries that will be made in the ledger accounts giving a reason for these entries. The type Read More …

Petty Cash Book is a record of all the petty cash vouchers raised and kept by the cashier. The petty cash vouchers will show summary expenses paid by the cashier and this information is listed and classified in the petty Read More …

A cashbook records all the receipts (cash and cheques from customers and debtors or other sources of income) and all the payments (to creditors or suppliers and other expenses) for a particular financial period. The cashbook will also show us Read More …

Definition and Purpose A book of original entry is a book of record in which transactions are recorded as they occur on a daily basis and in a chronological order, before they are posted to the relevant accounts in the Read More …

Returns Inwards: These are goods that have been returned by customers due to various reasons e.g. They may be defective/damaged,  Being of the wrong type. Excess goods being delivered. Goods returned may relate to cash sales or credit sales. For Read More …

Sales: This is the sell of goods that were bought by a firm (the goods must have been bought with the purpose of resale). Sales are divided into cash sales and credit sales. When a cash sale is made, the Read More …