H e l l o W o r l d

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 [URL="http://www.theforumsa.co.za/blogs/entry.php/37-Accounting-Debits-and-Credits"]lesson 1[/URL]

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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 [URL="http://www.theforumsa.co.za/blogs/entry.php/38-The-Accounting-Equation"]Lesson 2[/URL]
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The only way to learn accounts is to practice and practice and then practice some more.