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The Accounting Cycle

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The Accounting Cycle

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Transaction 2
You receive a receipt for stationary you bought for cash R10.00.

Step 1
Identify the source document, i.e receipt, invoice, credit note.

Step 2
Enter the source document into your journal(Please note this course is for manuel accounts, the capturing source documents in an accounting program will be handled differently.

Basic Journal for our transaction, the journal helps us identify the account to credit and the account to dedit, as we learnt in lesson 1

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Step 3
Transfer the journal amounts to the Ledger accounts. The Ledger is the principle book of accounts and in it all your books of account are kept.

The ledger accounts should look like this taking into concideration our first transaction from Lesson 2
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The only way to learn accounts is to practice and practice and then practice some more.

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  1. Blurock's Avatar
    I failed accounting at school because the teacher could not explain to me what all the books were for. His answer was to "shut up and pay attention". Needless to say I lost interest and rather bunked classes than to listen to his ramblings.

    Today part of my job is to analyse financials and to assess and assist businesses. I will never be a book keeper, but I made an effort to understand financials after I left school. How can you run your own business if you do not understand the financial side of it?