ADM 1340 Lecture 8: ADM1320 LECTURE 8

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

If the greater sum is on the left, the account has a debit balance. If the greater sum is on the right, the account has a credit balance. Step 1: analyze each transaction to determine its effect on accounts (if any) Step 2: record transaction as a journal entry in the general journal. Step 3: transfer information to appropriate accounts in the general ledger. Step 2 of accounting cycle: accounting record where the transactions are recorded in chronological order, general journal is most common, other journals can include: Entire group of accounts maintained by a company. List of accounts is called a chart of accounts: contains all the asset, liability, and shareholders" equity accounts, posting is the process of transferring information from the general journal to the general ledger accounts. List of all the accounts and their balances at a specific time. Serves to prove the mathematical equality of debits and credits after posting.