BUSS1030 Study Guide - Final Guide: Accounts Payable, Accounts Receivable, Cheque
Document Summary
Check that you have not recorded an amount on the wrong side (eg recorded a debit instead of a credit) (dr bal cr bal)/2 = amount on wrong side. Check that you have not made a transposition error (eg recording 210 as 120 or 78 as 87) (dr bal cr bal)/9 = a whole number. If these steps cannot identify the error then you may have more than one mistake and so will need to go back and recheck all your entries. 6, adjusting entries (at the end of the period-month) &at least one income statement account: increase revenue earned/expense assign revenues to the period when earned , expenses to the period when incurred. &at least one balance sheet account: update the asset and liability accounts. &never include the cash account (based on cash accounting) Payable-wages, interest incurred but not paid receivable. Prepayments- rent paid, supplies purchased but not used. Accrued expense: salary expense salary payable, interest expense interest payable.
