Sources and recording of data

Topics

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Sample objectives

What this unit covers

• The double entry system of book-keeping: Describe the double entry bookkeeping system, including how to process accounting information using this system, prepare ledger accounts, record transactions in the ledger, balance the ledger accounts as necessary, and transfer balances to financial statements. Additionally, interpret the ledger accounts and their balances, and identify the different sections of the ledger: the sales ledger, purchases ledger, and nominal (general) ledger. Note that explanations or use of folio columns and three-column running-balance accounts are not required.
• Business documents: Identify and comprehend various business documents including invoices, debit notes, credit notes, statements of account, cheques, and receipts. Fill out sample business documents accurately. Recognize how business documents serve as information sources, specifically invoices, credit notes, cheque counterfoils, paying-in slips, receipts, and bank statements.
• Books of prime entry: Discuss the benefits of utilizing different books of prime entry. Describe how to use and process accounting information in the various books of prime entry, including the cash book, petty cash book, sales journal, purchases journal, sales returns journal, purchases returns journal, and the general journal. Record ledger entries derived from the books of prime entry. Differentiate between trade discounts and cash discounts, and account for both. Clarify the dual role of the cash book as both a book of prime entry and a ledger account for bank and cash transactions. Explain how to record payments and receipts made through bank transfers and other electronic methods. Describe and implement the imprest system for managing petty cash.