a journal. This journal gives details about all the financial transactions of a business and tells which accounts these transactions affect. The transactions are initially recorded in the journal using the double-entry or single-entry method of bookkeeping. Journal entries are typically entered in chronological order and debits get entered before credits. Journal entries are important because they give you a cohesive record of the day-to-day financial transactions. They allow you to follow the money
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Double Entry Book keeping arises before Luca Pacioli period as explained by A. C. Littleton? Attempting to explain why double entry bookkeeping developed in 14th century Italy instead of ancient Greece or Rome‚ accounting scholar A. C. Littleton describes seven "key ingredients" which led to its creation. Private Property: The power to change ownership‚ because bookkeeping is concerned with recording the facts about property and property rights. Capital: Wealth productively employed‚ because otherwise
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nineteenth century with Alexander Shand [1844–1930].2 The Japanese translation of Shand’s (1873) Bank bookkeeping proved to be so important that his system of bank accounting became legally obligatory for the newly established banking system of the Meiji era. In the same year‚ Fukuzawa (1873–74) published a Japanese translation of Bryant and Stratton’s (1871) textbook‚ Common school bookkeeping. Yukichi Fukuzawa [1835–1901]‚ a prominent Japanese scholar and the founder of Keio Gijuku University‚
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art * Of recording‚ classifying and summarizing * In terms of money * transactions and events of financial nature and * Interpreting the results thereof. Book keeping- Bookkeeping provides the information from which accounts are prepared but is a distinct process‚ preliminary to accounting. Bookkeeping is the recording‚ on a day-today basis of the financial transactions and information pertaining to a business. It is concerned with ensuring that records of those individual financial
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Accounting History. Accounting‚ Auditing and Accountability Journal‚ Vol. 9‚ No. 4‚ pp.38-64. Garner‚ O. S. (1974). Reflections on the Uses of Accounting History. Accounting Historian (January)‚ p.1. Geijsbeek‚ J. B. (1914). Ancient Double-Entry Bookkeeping: Lucas Pacioli’s Treatise. Denver: University of Colorado. Giroux‚ G. (1999). A Short History of Accounting and Business. London: Wiley. Goldberg‚ L Have‚ O. (1976). The History of Accountancy. California: Bay Books. Hopwood‚ A. G. and Johnson
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According to the double entry accounting system‚ a business transaction affects at least two accounts and the debit and credit amounts recorded for the affected accounts must be balanced. These transactions will be recorded in the appropriate books of accounts. Business entities develop a chart of accounts‚ a list of account titles with their corresponding account codes that the business will use in recording and posting in the books of accounts and in reporting in the financial statements. Double
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documents‚ are things like invoice‚ credit note‚ debit note‚ cash bill‚ payment voucher‚ official receipt‚ cheque counterfoil and memo. All this document are related to financial transaction of the organization. The source document is essential to the bookkeeping and accounting process. It is the evidence that a financial transaction occurred. If a company is audited‚ source documents back up the accounting journals and general ledger as an indisputable audit trail.( http://bizfinance.about.com/od/bookkeepingessentials/qt/Source_Document
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CONTROL ACCOUNTS AND ITS USES INTRODUCTION: As the business grows in size‚ more than one ledger is required for recording its transactions which have also expanded with the business. Since the bulk of the entries are made in the accounts of debtors and creditors‚ these two classes of accounts are taken out of the General Ledger and put in separate ledgers - the Sales Ledger for debtors’ accounts and the Purchases Ledger for creditors’ accounts. There may be more than three ledgers but for simplicity
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bricks‚ and bricks‚ clicks‚ and flips. Flips refers to catalogs (Wikipedia.org). The open-source software I chose is GnuCash. GnuCash is a free and open source personal and small business accounting software program that implements a double-entry bookkeeping system. It was initially aimed at developing capabilities similar to Intuit‚ Inc.’s Quicken application‚ but also has features for small business accounting (Wikipedia.org). GnuCash runs on the following operating systems: Windows‚ Mac OS X‚ GNU/Linux
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Accounting history # Study of evolution in accounting‚ thought‚ practice & institutions # Responds to change in environment & societal needs. # Understand better the present‚ to forecast the future. # Contribute to acting pedagogy‚ policy & practice. History Development of Accounting Development of accounting record General Scientifc Period(1800-1955). # Concern about explaining what has been done without concerning about whether it is correct or not. Normative period (1957-1970) # Corncerning
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