Basic Bookkeeping

Topics: Generally Accepted Accounting Principles, Balance sheet, Accounts receivable Pages: 2 (518 words) Published: May 25, 2014
Assessment 1. Written Assessment
1. Give an example of daily financial records that you could have to maintain? Update your accounts receivable and accounts payable daily on your accounting computer using the software provided or modifies to suit the organisational particular needs.

2. What are the requirements regarding identifying and rectifying errors in documentation?

- Using the right accounting method: cash and accrual

- Using professional bookkeeping method: hiring specialist, qualified accountant or bookkeeper.

- Separate personal and business finances

- Ensuring employee and other categories are recorded accurately
 - Perform basic account reconciliation.

- Implement adequate internal controls

- Save receipts for small purchases

- Know the difference between profit and cash flow

- Rely also on a paper environment

- Honour your cheques and GST
3. How can you ensure that credit and debit transactions are accurately recorded, in accordance with organisational requirements?
 The use of computer software. The system will automatically record entries behind the scenes. Consider each transaction as amount that will either increase or decrease specific accounts, i.e. your bank, revenue as the Chart of Accounts. 4. What are the requirements regarding the maintenance of transactions in a general ledger?


The process is to record each journal entry into the general ledger. A general ledger holds four types of accounts: assets, liabilities, income, expenses and references equity.


Income and expenses are actually types of asset and liability accounts. There are only two types of accounts managed by a General Ledger:

- Accounts that tell you how much you are owed

- Accounts that tell you how much you owe
5. What are the requirements regarding the posting of transactions into the general ledger?

- Commencing business entries

- Correction of posting errors

- Interest expense

- Interest receivable; non-cash transactions

-...
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