Management and Organizational Studies 1023A/B Chapter Notes - Chapter 3: Retained Earnings, Cash Register, General Ledger

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Assets: debits = increase, credits = decrease, assets normally show debit balances, occasionally a credit balance (like cash overdrawn) may be correct. Steps in the recording process: accounting cycle 9 steps, recording process first 3 steps. The journal: transactions are first a journal entry in original recorded in chronological order in a journal than transferred to the accounts. Journal shows debit and credit effects on specific accounts: the general journal makes several contributions in the recording process: It discloses the complete effect of a transaction place, including an explanation and , where applicable, identification of the source document. It helps provide a chronological record of transactions. It helps to prevent and locate errors, because debit and credit amounts for each entry can be quickly compared in one. The ledger: ledger group of accounts maintained by a company, keeps all the information about changes in specific accounts in one place.