Accounting accn1 14th may 2014

humzzy

whos doing the paper tomorrow? i have a feeling journal is gonna come up

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Reply 1

humzzy

what's the difference between transposition error and unequal entry error?

Reply 2

jei1

transposition error is where for example the entry is £45 but you have transposed the other entry and it has incorrectly been posted as £54.

unequal entry error is basically where the credit side does not equal the debit side of the posting.

Reply 3

humzzy

Original post by jei1

thanks tht makes sense now :smile:

Reply 4

dilz555

Original post by humzzy

whos doing the paper tomorrow? i have a feeling journal is gonna come up

What's a journal?
As in the general journal?

Reply 5

humzzy

Original post by dilz555

What's a journal?
As in the general journal?

yes thats what i mean i really dont get it tho :frown:

Reply 6

jei1

I really hope journals dont come up...im screwed otherwise! :/

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Reply 7

humzzy

Original post by jei1

I really hope journals dont come up...im screwed otherwise! :/

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im pretty sure it will cuz it aint cum up in a looong tym

Reply 8

jei1

Anyone got any tips on how to post entries in sales ledger and purchase ledger...not the control accounts..just the actual ledgers!

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Reply 9

tntn1010

Original post by jei1

Anyone got any tips on how to post entries in sales ledger and purchase ledger...not the control accounts..just the actual ledgers!

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These diagrams might help...let me know if you want me to explain them

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Reply 10

jimmey09

Original post by judging

These diagrams might help...let me know if you want me to explain them

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Isnt it just double entry

Reply 11

nijam

i made some revision notes for unit 1

unit 1 revision.docx27.7KB

Reply 12

jei1

Thanks for the diagrams, but could u explain it please...literally still struggling and the exam is tomorrow!!!!! :0

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Reply 13

nijam

Suspense account is simple you just have to follow a principle. For every correction you make u put that in the opposite side in the suspense acc. For example if sales is undercasted by 100. You correct this error by crediting 100 in sales acc. This goes in debit side of the suspense

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Reply 14

humzzy

Original post by nijam

thankss that helped me tooo

Reply 15

nijam

For the control accounts it is easy to learn the layout then u can do most of the questions

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Reply 16

tntn1010

Original post by jei1

Thanks for the diagrams, but could u explain it please...literally still struggling and the exam is tomorrow!!!!! :0

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Right i think people get confused with the whole accounting system thing
1) source document - evidence of accounting information e.g. invoice
2) books of original entry - gathering and sorting accounting information e.g. sales day book, journal, cash book
3) ledger accounts - items "posted" to record the dual aspect of the transaction e.g. sales ledger, general ledger, purchases ledger
4) trial balance - arithmetic checking of double entry book keeping, a summary of the balances of all the accounts at the end of the accounting period
5) financial statements - statement measuring profit/loss, assets liabilities and capital, income statements and balance sheets

So those are the steps in the accounting system now you know exactly what point you're at - the ledger accounts
The sales ledger contains all the accounts of receivables - people who owe money to the business
The purchases ledger contains all the accounts of payables - people who the business owes money to
The general ledger contains other accounts like the sales account and the purchases account. DON'T GET MIXED UP BETWEEN PURCHASES/SALES LEDGER AND PURCHASES/SALES ACCOUNTS

So to post entries into the sales and general ledgers you need to have information from the sales day book. The sales day book has the details of the sale (the names) and the amount. All the names in the sales day book each have a separate account in the sales LEDGER (remember the sales ledger contains all receivables accounts), so you take the information for each receivable in the sales day book and put it in each account on the DR side, of the sales LEDGER. Now obviously this has to be a double entry, the other account affected by sales is the sales ACCOUNT. The sales ACCOUNT is in the GENERAL LEDGER. The sales account contains the totals of all receivables. So you total it up from the sales DAY BOOK and enter in the total figure in the GENERAL LEDGER on the CR side.
At the end you will notice that all of the DR entries of all the accounts in the Sales Ledger match up to the total figure in the CR side of the General Ledger.

The same process is with the Purchases Ledger but obviously DR and CR is swapped.
I basically explained what the diagram was showing...

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