The document discusses journal, ledger and trial balance in accounting. It provides details on what they are, their types and examples. The journal records financial transactions chronologically. The ledger is the book of final entry that stores summarized information from journals. The trial balance lists account balances and ensures debits equal credits.
The document discusses journal, ledger and trial balance in accounting. It provides details on what they are, their types and examples. The journal records financial transactions chronologically. The ledger is the book of final entry that stores summarized information from journals. The trial balance lists account balances and ensures debits equal credits.
The document discusses journal, ledger and trial balance in accounting. It provides details on what they are, their types and examples. The journal records financial transactions chronologically. The ledger is the book of final entry that stores summarized information from journals. The trial balance lists account balances and ensures debits equal credits.
The document discusses journal, ledger and trial balance in accounting. It provides details on what they are, their types and examples. The journal records financial transactions chronologically. The ledger is the book of final entry that stores summarized information from journals. The trial balance lists account balances and ensures debits equal credits.
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JOURNAL, LEDGER AND
TRIAL BALANCE Presenting By: M R Khan Dipu ID: 191-35-393 Journal
o Official Book. o Records financial transaction. o Records in a chronological order. Types of Journal
Some types of journals:
General Journal.
Sales Journal.
Cash Receipts Journal.
Account Payable Journal.
Journal in Accounting Only general journal is used by all companies. The others journals are optional. Includes transaction date, transaction description, accounts that were effected, as well as the debits and credits. Use of Some Journals General Journal: Records all general transactions. Sales Journal: Records inventory or merchandise sales on credit. Cash Receipts Journal: Records cash inventory or merchandise sales as well as cash sales. Sales Returns Journal: Records sold but late returned merchandise. Example of General Journal Account Title and Date Description PR Debit(tk) Credit(tk) Inventory 10,000
01/02/20 -Cash 10,000
To Record Inventory Purchase 01/02/20 Utilities 7,500
-Cash 7,500
To Record February Utility
Payment Ledger o Principal Book of account. o Book of Final Entry. o Completed transaction computerized records. o The chart of accounts. o Poster of summarized information from journals. Types of Ledger General Ledger. Subsidiary Ledger. Account Receivable Ledger. Account Payable Ledger. Ledger in Accounting Refers to the general ledger. Used by company as the general ledger. General ledger is computerized as modern. Includes account types, assets, liabilities and equity accounts as well as cash, account payable, debit and credits.. Use of Some Ledgers General Ledger: Records all the accounts. Subsidiary Ledger: Record transaction with common characteristics. Account Receivable Ledger: Called The Customers Ledger too. Records all current and outstanding accounts receivable at the end of a period. Account Payable Ledger: Called The Creditors Ledger too. Records all current and outstanding accounts payable. Example of General Ledger Account Number Account Description Debits(tk) Credits(tk) 1 Assets 10,000 2 Liabilities 1,000 3 Equity 9,000 Totals 10,000 10,000 Trial Balance o List of closing balances of ledger accounts on a certain date. o Summary of all of the transaction account balances in the general ledger. o Shows snapshot of the accounting records on a specific date. Types of Trial Balance Unadjusted Trial Balance. Adjusted Trial Balance . Post Closing Trial Balance. Trial Balance in Accounting Prepared end of an accounting cycle. Consist of thee columns. Incudes account names, debits and credits. Sums total debits and credits at the bottom. Debits must always equal the credits. Use of Trial Balance Unadjusted Trial Balance: Gathers and lists all transaction account balances at the end of a period. Adjusted Trial Balance: Is prepared at the end of the year to reflect the year-end adjustments. Post Closing Trial Balance: Lists permanent accounts that still have balances after the closing entries have been made. Example of Unadjusted Trial Balance Account Debit(tk) Credit(tk) Cash 32,800 Account Receivable 300 Inventory 39,000 Leasehold Improvement 1,00,000 Accounts Payable 49,000 Long-term Liabilities 99,000 Common Stock 10,000 Dividends 1,000 Revenues 27,000 Cost of Goods Sold 10,200 Rent Expense 500 Supplies Expense 500 Utilities Expense 200 Wages Expense 500 Interest Expense 500 Totals 1,86,300 (1,86,300) THANK YOU
