Once transactions have been analyzed and recorded in a journal, it's necessary to classify and group all similar items. The groupings are accomplished by the bookkeeping procedure of posting all the journal entries to appropriate accounts. The numbers from the journal entries must be transferred to the individual accounts.
- Once transactions have been analyzed … and recorded in a journal, … it's necessary to classify and group all similar items. … This is accomplished by the bookkeeping procedure of posting … all the journal entries to appropriate accounts. … That simply means that the numbers … from the journal entries must be transferred … to the individual accounts. … Now, I should note at this point … that computers are very, very good … at this part of bookkeeping. … Computers transfer the right numbers … to the right accounts and make sure those numbers … get put on the proper side of the account, … the debit side or the credit side. … As indicated earlier, accounts are records of like items. … They show transaction dates, increases and decreases, … and balances. … For example, all increases and decreases … in cash arising from transactions recorded in the journal … are accumulated in one account called cash. … Similarly, all sales transactions are grouped together … in the sales account. … Posting is no more than sorting all journal entry amounts …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
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