MGCR 211 Lecture Notes - Lecture 5: Accounts Receivable, General Ledger, Accounting Equation
21 Sep 2016
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Using a t account determine cash collections from customers: to determine cash collection must set up a formula, 650+3000-x=420 o x= 32000 (this is on the credit side) Using a t account determine the original cost of the land that was sold: 4700+8000-y = 6250 o y= 6450 (credit) Each transaction a company makes throughout the year is recorded in its accounting system. All company transactions are recorded in the master journal, general journal. Other than general journal, there are also journals which include: cash receipts, cash disbursements, sales, purchases. The idea of general journal is similar to the idea of personal journal (diary). It is a book which will keep the records of all business transactions. In manual accounting or bookkeeping systems, business transactions are first recorded as a journal entry in a company"s general journal. Accountants record transactions first in a journal o. Journal: a chronological record of an entity"s transactions.
