ARE 2210 Lecture Notes - Lecture 1: Double-Entry Bookkeeping System, Petty Cash, Accounts Payable
29 Jan 2020
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You report cash accounting when you get the cash. I spend the cash i get the cash. Accrual- you didn"t get the money yet, but you report it when its been earned. Buy something but don"t pay for it when you buy it you still report it because it"s been accrued. Cash and accrual(timing/when), single entry and double(how) entry, are not the same thing. Generally, a manual system that uses only income and expense accounts. Uses a revenue and expense journal to record activity. Must still maintain petty cash, a/r, a/p, p/r and depreciation schedule. Revenue and expense journal: fixed assets/depreciation, payroll, petty cash, accounts receivable, accounts payable, mileage, other. Credit: farmer buys feed for his cows with a check for . It impacted cash: the cash went down: farmer borrows from the bank and deposits into checkbook. Credit liabilities : farmer buys truck for ,000.
