Fabm

journal

is known as the book of original entry. The journal is organized by date of transaction.

general ledger

also known as book of accounts, maintain at least one sheet per account.

the journal entry

the accounting journal is the diary of the business. Entries are recorded in chronological order. Recording transactions in the journal is called "journalizing".

special journals

sales journal, purchase journal, cash receipt journal, cash disbursements journal

sale journal

used to record sales made on credit terms. This means that the main journal entry represented by transactions recorded in the sales journal.

purchases journal

used to record purchases of inventory made on account. Entries in the purchases journal are triggered by the receipt of the supplier's sales invoice.

cash receipt journal

used to record all receipts of cash including cash sales. Entries in the cash receipts journal are triggered by the issuance of the official receipt.

cash disbursement journal

used to record all payments of cash including cash purchases. An entry in the cash disbursements journal represents a credit to cash and issuance of a check.

general journal

used to record transactions that beyond the scope of the special journals.

subsidiary ledgers

used for accounts that require balances of its components such as Account Receivable and Accounts Payable.

Different kinds of Bank Accounts

Savings Account, Checking Account, Time Deposits and Other Investment Accounts, Bank Forms, Deposit Slip, Withdrawal Slip

Savings Account

The simplest bank account. The business deposits money in the bank for safekeeping.

Checking Account

like a savings account with an added feature - the depositor can issue bank checks. A bank check is an acceptable form of payment.

Time Deposits and Other Investment Accounts

Savings and checking accounts are transactional in nature, Companies maintain checking account to use bank checks.

Bank Forms

There is a corresponding bank form for almost every transaction with the bank. Take for example the opening of a bank account.

Deposit Slip

It is a bank form filled out by the depositor. The depositor will indicate the account name as well as the account number.

Withdrawal Slip

It is a bank form filled out by the account holder

Bank Statement

detailed transaction history of the account over the reporting period. It is a report prepared by the bank for those accounts that do not have passbooks.

Bank Reconciliation

Recall from earlier discussions that cash is an important asset. It is therefore essential for us to know how much cash the company can use for its operations.