Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 3 - The Accounting Information System - Questions: 15

Answer

1) As soon an the transaction takes place, it is received in accounts section with an evidence, like sales voucher, payment voucher etc; 2) is to enter the transaction information in a Journal; 3) is to transfer the journal information to the respective account in the ledger.

Work Step by Step

1) The first steep is to analyze each transaction in terms of effect on accounts. The two accounts are identified, for debit and credit; 2) in Journal, the transaction are entered in chronological order; 3) the respective account in the ledger is debited as per the journal, so that all the transactions of a particular account can be viewed at one page.
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