Accounting: Erroneous Posting to the Ledger

Adjusting entries are entries made prior to the preparation of financial statements to update certain accounts so that they reflect correct balances as of the designated time.

a. To take up unrecorded income and expense of the period. b. To split mixed accounts into their real and nominal elements.

a. Real Accounts (Permanent accounts) – accounts that are not closed at the end of the accounting period. b. Nominal Accounts (Temporary accounts) – accounts that are closed at the end of the accounting period.

<p>Recording an identified accountable event in the journal by means of a journal entry.</p> Signup and view all the answers

<p>A simple journal entry contains a single debit and a single credit element, while a compound journal entry contains two or more debits or credits.</p> Signup and view all the answers

<p>Posting</p> Signup and view all the answers

<p>Events that do not involve an external party.</p> Signup and view all the answers

<p>To transfer data from the journal to the appropriate accounts in the ledger.</p> Signup and view all the answers

<p>Transaction: Jan. 8 - Services worth ₱30,000 were rendered for cash.</p> Signup and view all the answers

<p>Each transaction is recorded in two parts - debit and credit.</p> Signup and view all the answers

<p>Contra accounts are presented as deductions to their related accounts.</p> Signup and view all the answers

<p>Each transaction is recorded with equal debits and credits.</p> Signup and view all the answers

<p>To ensure accurate recording of transactions and maintain the balance in the accounting equation.</p> Signup and view all the answers

<p>Adjunct accounts are presented as additions to their related accounts.</p> Signup and view all the answers

<p>Assets and Expenses have debit balances, Liabilities, Equity, and Revenues have credit balances.</p> Signup and view all the answers